Not So Junky: Speculative Bond Yields Near 4%
After dire predictions of disaster for high-yield paper, defaults never hit the painful levels forecast last spring.
How popular are junk bonds these days? Very. High-yield is delivering much lower yields lately as investors snap the offerings up amid a large issuance of new junk. And that spells price appreciation.
The average yield on junk is approaching 4.0%, and is at the lowest point in the past quarter century, according to the ICE BofA High Yield Index.
In fact, BCA Research likes junk bonds better than supposedly less-risky investment grade corporate bonds. “We prefer high-yield over investment grade within the US corporate space, particularly the Ba credit tier,” the well-respected research firm wrote in a client note last week. The reference was to the highest speculative grade rating level from Moody’s Investors Service.
Un an après le début de la pandémie – Le nouveau groupe pharma Centessa décolle de Genève
tdg.ch - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from tdg.ch Daily Mail and Mail on Sunday newspapers.
Well positioned going into 2021
proactiveinvestors.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from proactiveinvestors.com.au Daily Mail and Mail on Sunday newspapers.