Yields on
high-yield bonds soared, because bonds with shaky credit ratings looked as appetizing as the dollar menu at a greasy spoon in the Great Meltdown.
If stock and bond returns generally move together, estimates of [[beta].sub.1] should be positive, given that the final two variables, [RBIND.sub.it] and [RBIND.sub.it-1], control for the impact of movement in the
high-yield bond market.
Chicago: Fitch Ratings said the US institutional leveraged loan market narrowly surpassed that of
high-yield bonds for the first time since 2008.
The LevFin Insights team consists of Christopher Donnelly, Matthew Fuller, and Kerry Kantin, who together covered leveraged loans and
high-yield bonds for S&P global's leveraged commentary & data unit; Robert Polenberg, who headed LCD's team of data professionals; and Marc Auerbach, who ran LCD's sales and customer support effort.
Summary:
High-yield bond issuance in Europe, the Middle East and Africa (EMEA) outpaced that in the US for the last two years
economy has struggled to recover from the 2008 financial crisis, the
high-yield bond market has thrived, both in the amount of new capital issuers have raised and returns to investors.
Top High-Yield Mutual Bond Funds * 3-Year 5-Year Expense Return Return Fund Name (Ticker) Ratio (1) (1) Neuberger Berman High Inc Bond Inv (NBHIX) 1.00% 7.68% 5.38% Columbia High-Yield (CMHYX) 0.77 5.86 4.46 TIAA-CREF
High-Yield Bond (TCHYX) 0.34 5.52 N/A Westcore Flexible Income (WTLTX) 0.85 5.35 4.03 T.
By way of clarification, Glenn Yago, director of capital studies for the Milken Institute and the author of Junk Bonds: How High-Yield Securities Restructured Corporate America, told the magazine that "Japan desperately needs a
high-yield bond market, and the timing for such a market seems good." Here, he is referring to the fact that the Japanese economy is something of a disaster.
Another test, however, strongly indicates that from the investor's standpoint, there is a sizable equity component in a nonconvertible
high-yield bond. Correlation coefficients consistently show that straight noninvestment-grade bonds trade nearly as much like stocks as pure debt instruments.
The recapitalization plan that the company has chosen enables the public shareholders to receive $14 in cash, a
high-yield bond worth $6, and one new share (the "stub") in the recapitalized entity valued at $14.