Over the peak
A rebound in the US economy has led to a welcome drop in the default rate of high-yield corporate bonds. Richard Bravo looks at the factors that have contributed to this drop, and the likelihood of the trend continuing
Most people involved in the high-yield corporate bond sector have a lot to be happy about following the first quarter of the year. For the investor community, total returns have started off the year strongly, and on the corporate side, appetite for high-yield debt is up, issuance levels are ballooning and according to recent reports, default levels are continuing to fall. And on top of that, some analysts have positive expectations for the remainder of the year.
US high-yield defaults totaled
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