Sick and tired of the three per cents
After a shaky start, the US high-yield market has risen, fallen and re-emerged toconstitute roughly one-fifth of all dollar corporate bonds. And the European market is heading in the same direction. Philip Moore traces the market’s story from its roots
Unlike the Eurobond market, which can accurately pinpoint its inauguration to the summer of 1963, there is no universally accepted date on which the high-yield market came into being. As far back as the Victorian era, British investors – described by satirical magazine Punch in 1845 as being “sick and tired of the three per cents” offered by government bonds – were losing a fortune in their pursuit of enhanced yields in the farthest-flung corners of the Empire and beyond.
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