Debt Wall Crumbles by $393 Billion as Fed Eases Junk Alarm: Credit Markets

The wall of bonds and loans maturing in the next four years has been slashed by 34 percent to $756 billion as the threat eases that a wave of junk-rated debt coming due will cause a surge in default.

While the Federal reserve’s plan to bolster the economy by buying bonds has drawn criticism from governments around the world, Republican lawmakers and some economists, its policies have helped employers obtain credit by reducing defaults and averting even higher unemployment. Sales of junk, or high-yield, bonds have already surpassed last year’s record, while loans to the neediest borrowers are up 79 percent, Bloomberg data show.