|
|
Article: Junk bonds: yields falling as investors chase returns.(Who's Who Banking & Finance--Lenders of Last Resort)(market for speculative corporate debt)
- Article from:
- Los Angeles Business Journal
- Article date:
- October 27, 2003
- Author:
CopyrightCOPYRIGHT 2003 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Overview: Junk bonds, high-yield bonds, distressed debt--the market for speculative corporate debt has always spooked the average investor, as it should. Meanwhile, a slew of savvy hedge fund managers have plunged into the market chasing higher returns.
After bottoming out in 2002, the high-yield market roared back to life this year. Though prices have skyrocketed, driving yields down, investors who got into the junk market early this year have been richly rewarded.
Junk bonds, often called high-yield bonds, are a form of corporate debt issued by companies that carry a speculative credit rating of less than triple-B.
Many investors associate ...