Abstract
During the early 80's, junk bonds played an important role in financing middle market companies. This article furnishes evidence that high-yield bonds are returning to the middle market after a long period of serving as the handmaiden of the M&A market. Noninvestment-grade bonds have proven their merit not only as a diversifying asset but also in a risk/reward comparison with other classes of securities. Default rates have declined markedly, and spreads versus Treasurys have stabilized. The current boom in high-yield issues is not evidence of overheating but rather a continuation of the high-yield market's longer-term integration into the investment mainstream.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
