Salient to Investors:

Investors are shunning bonds from the neediest borrowers on a default rate at the highest level since 2009.

S&P says the default rate of these borrowers reached 27.2 percent in August, up 10 percentage points from a year earlier.

Dan Newhall at Vanguard said there’s not a whole lot of upside at these average prices as demand from institutions is far outstripping the net high-yield new supply, thus bidding up prices.

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