Traders’ rush into the lowest-rated junk debt has pushed yields to report lows, reflecting Wall Road’s thirst for fixed-income returns and growing confidence that even struggling companies can survive the pandemic.

The yield on an index of triple-C rated company bonds settled Thursday at an all-time low of 6.42%, based on Bloomberg Barclays information. That was down from 7.4% getting into the 12 months. Yields fall when bond costs rise.

Document-low yields for the worst-rated bonds mark a reversal after pandemic shutdowns fueled a selloff in riskier debt lower than a 12 months in the past. Again then, traders anticipated many struggling corporations to go bankrupt or default. Credit score markets froze, driving yields to current postcrisis peaks, notably for low-rated corporations.

Actions by the Federal Reserve, together with chopping rates of interest and shopping for billions of {dollars} price of bonds, helped gasoline a restoration in company debt. With rates of interest close to zero, traders have ventured into riskier property, together with junk-rated company bonds, in quest of larger yields. That has helped many struggling corporations refinance their debt at decrease rates of interest.

Now, the prospect of vaccines and a return to financial normalcy are powering a restoration within the lowest-rated junk debt, a market made up of corporations notably delicate to the financial system’s path. Triple-C rated company bonds have thus far returned 2.2% to traders in January, based on Financial institution of America, outpacing beneficial properties on higher-rated company bonds and leveraged loans.