Despite concerns about the U.S. economy, the junk-bond market is thriving, with the risk premium for sub-investment-grade debt narrowing to near pandemic lows. This trend, driven by cooling inflation and hopes for interest-rate cuts, has attracted $3.7 billion into junk-bond funds this year. Investors seeking high yields around 8% have fueled $131 billion in speculative-grade bond sales from companies like Block and Icahn Enterprises, significantly up from $71 billion last year.