High Yield flying high
The high-yield primary markets started the new year at a frenetic pace, with record-breaking deal sizes and strong performance. But the scramble for bonds may mean investors have to work harder to earn returns, as Hardeep Dhillon reports
Gauging the look of the high-yield market in 2006 may not be such a hard call to make, as consensus is that the year will develop along much the same path as 2005. The strong momentum has continued into the new year with the three-year downward trend in default rates continuing to provide good support for the market. In February, speculative-grade default rates hit a historical low of 1.8% globally, 2.4% in the US and a seven-year low of 0.5% in Europe, according to Moody's.
"We do not see any
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