July 15 (Bloomberg) -- The record credit-market rally of 2009 engineered by President Barack Obama and Federal Reserve Chairman Ben S. Bernanke is starting to reverse as optimism erodes that the economy is poised to recover. Corporate bonds, loans and mortgage securities and asset- backed debt have all weakened or been stuck in ranges in the past three to five weeks on concern that markets strengthened too far, too fast. Yields on high-yield, high-risk U.S. company bonds rose to 9.69 percentage points more than Treasuries yesterday, after falling to 9.17 points on June 12 from 16.62 points on Dec. 31, according to Barclays Capital Inc. index data. Loans to the companies fell to 79.41 cents on the dollar, from 80.24 cents on June 12, Standard & Poor’s data show. (more)
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