Quality junk

chart of the month

The high-yield market has come under considerable pressure lately, with mutual funds suffering substantial outflows and a less than accommodating primary issue market. But this slow down comes after a period of healthy supply in the junk arena, which could herald marked deterioration in default rates as the market progresses.

The chart below, provided by Stephen Peacher, chief investment officer at Putnam Investments, shows that during periods of high issuance in the credit cycle, the qualit

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: