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Bernanke's Nonexistent Junk Bond Revival: Street Whispers

Broader stories also emerge.

C-Suites across America may not be getting the credit they deserve for repairing balance sheets in the wake of the crisis. Overall debt and debt-to-EBITDA levels across the S&P are roughly 40% below pre-bust levels, paving the way for flexibility to increase dividends or map out new growth strategies in coming years.

For instance, investment grade companies like Disney (DIS - Get Report) and Costco (COST - Get Report) have recently returned to bond markets to finance large dividend increases. Meanwhile, Amazon (AMZN - Get Report) recently tapped bond markets for the first time in a decade, as the company ratchets up its competition against retailers Wal Mart (WMT) and tech giants Apple (AAPL) and Microsoft (MSFT).

Most important; however, is that bond yields may not be as predictable as simply following the Fed. If falling yields are, in part, a function of weak supply, then rising yields may have as much do with C-Suite aggression and general re-leveraging throughout corporate America as any change in Fed policy.

For more on the Fed's impact on investments, see why a Bernanke dividend boom is poised to hit private equity stocks.

Also see why low interest rates mean Fed destruction will hit bank stocks in 2013.

-- Written by Antoine Gara in New York
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