Global sales of corporate bonds fell 18 percent to $3.19 trillion in 2010, according to Bloomberg.

However, companies whose credit ratings are below investment grade went on a borrowing binge. Junk bond issuance surged by 74 percent, to $367 billion in 2010, according to Bloomberg.

The European debt crisis is rocking the global stock markets, many debt markets as well as the Euro.

But one market that seems to be immune from the growing volatility is the market for riskier US corporate bonds.

Here is yet another sign the economy is in better shape than the skeptics think it is...maybe.

Standard & Poor's said it expects the US corporate speculative-grade default rate to plummet to 2.8 percent for the 12-months ending June 2011. This is less than the current rate of 5.9 percent.

High-yield bonds are slowly recovering from the fallout related to the European sovereign debt crisis.

Junk bond mutual funds saw inflows of $1.39 billion in the week ended June 28, according to data provided by Thomson Reuters. It's the second week in a row of inflows. Prior to that there were only outflows since the end of April.

So much for those dire forecasts calling for massive defaults of junk bonds.

Fitch Ratings says the pace of high yield defaults has slowed so dramatically in 2010 they have even defied the most optimistic forecasts.