Tag: Junk Bonds

This relatively new alternative asset class had a 2.7% rate for loan non-payments in the second quarter, a Proskauer study says.

JPM chief points out that these loans have not yet faced a real economic downturn, which high-yield did.

Factor in risk adjustments and fees, and this fast-growing asset class’s high returns get whittled down, an academic paper finds.

Yields are high, and well-fixed institutions back them, but what happens in a recession?

Risk grows as a raft of junk-rated issuers, paying modest interest, must refinance their debt at much higher rates.

Major investment firms such as Blackstone have pushed into business development companies, whose sizable yields are alluring.

A report sees higher rates and a weakening economy pushing firms into bankruptcy or restructurings.

Direct lending is projected to fare better than syndicated loans and junk bonds.

The proposal’s aim is to reduce risk and enhance income, report to trustees says.

Outpaced last year, high yield is in solid shape at a time when stocks may come back to earth, the firm argues.