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The bonds' rate "is the only issue," said a senior official directly involved in the negotiations.
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Fill that allocation with bonds rated A or better.
Bonds rated "A" or below account for about 93percentt of the American corporate bond market.
Even telecommunications bonds rated below B level -- the nether regions of junk -- are being sold.
About 22percentt of assets are in bonds rated BBB, the lowest rung of the investment grade.
Money market funds can buy only bonds rated in the top two categories.
Bonds rated BAA and lower, Deane says.
Bonds rated speculative-grade pay an average 9% yield.
The 10-year Treasury bond rate is 1.87 percent.
The US 10-year bond rate is now down to 2.5%.
The plot shows the policy rate (labeled "repo rate," in black), the two-year Swedish government bond rate (in red), and the two-year rate mortgage bond rate (in blue).
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