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In One Chart: Distress in junk bond prices hit 6-month high in June: J.P. Morgan

The U.S. junk-bond market may be flashing a new warning that the credit cycle is nearing its end.

About $52.5 billion of corporate bonds issued by U.S. companies with “junk” credit ratings were trading in June at prices below 70 cents on the dollar, the highest amount in six months, according to a J.P. Morgan note earlier this week.

Bonds that trade below par, or face value, can signal concerns about the ability of a borrower, or area of industry, to service its debts. Riskier companies that don’t qualify for top investment-grade ratings are already categorized as high-yield, or junk credits.

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