A few things have been going on in the world of high yield credit recently. While the 'beta' to recent interest rate weakness is low (spread duration reduces any empirical sensitivity here), the relative weakness on high-yield bonds in the last few days has been quite notable for the oh-so-high-beta 'safety' of high-yield credit. And while technicals (flows) dominate, the illiquidity in the cash bond market remains dire for any size and the... full story ![]()
In the land of low yields the split-rated bond is king. This is the mantra I've been loudly chanting to clients for the past six months. The multitudes of bond haters continue to screech about how overvalued Treasurys and investment-grade and high-yield corporate bonds are, but some split-rated bonds deserve to be in your portfolio.
forbes.com (1 month and 21 days ago)
The European high yield bond market is on track for a record-breaking year thanks to a sensational start, which saw the strongest-ever quarter of issuance, as €21.4 billion of paper priced, according to LCD.
forbes.com (1 month and 9 days ago)
The Barclays US high yield index fell below 5% for the first time in its 30-year history
efinancialnews.com (10 days ago)
High yield bond issuance in Europe is off to a record start in 2013, with a whopping €10 billion in deals priced over the past 30 days. This number includes roughly €5.6 billion priced last week, making this period one of the busiest in the market's history. The recent market rush brings year-t0-date European high yield bond issuance to €31.5 billion (through May 5), more...
forbes.com (11 days ago)
The average annual credit loss in high yield bond portfolios was 2.65% between 1992 and 2011. During that same time period, your average yield for taking that credit risk was 10.25% and your average option adjusted spread was 5.7%. Today, that total yield has dropped to 4.96% High Yield - The New Risk Free Asset Class So at 4.96%, which is actually 4.04% above a...
zerohedge.com (8 days ago)
While most comprehend that when buying credit-risky instruments the most critical aspect of return is the spread (or additional compensation over the risk-free rate) which itself is in 'bubble' territory; it is nevertheless spell-binding that the so-called 'High Yield' corporate bond market is now trading with a yield below 5% for the first time on record - a level at which...
zerohedge.com (10 days ago)
NEW YORK ( TheStreet ) -- With the Federal Reserve keeping a lid on interest rates, 10-year Treasuries yield a skimpy 1.75%. For a better payout, consider high-yield municipal funds. According to Morningstar, the average fund in the category yields 4.2% tax-free. That is the equivalent of a taxable bond that yields more than 7% for high-income investors. Make no mistake,...
thestreet.com (1 month and 6 days ago)
Traditional and non-traditional investors flocked to Europe’s junk bond markets last week – with each hunting yield at different ends of the credit spectrum
efinancialnews.com (11 days ago)
CIFI Holdings shelved a high-yield bond sale Friday, reflecting investors' wariness toward riskier assets.
wsj.com (2 months and 26 days ago)
Fund managers worried about the end of an extended bull market in bonds might look to Asia, where a sudden selloff in a certain class of risky bonds has left many investors with large losses.
wsj.com (2 months and 28 days ago)
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