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Understanding the share of issuance for high yield bonds

Chanderlekha Nayar

Why credit risk is an essential value driver of high yield bonds (Part 4 of 5)

(Continued from Part 3)

High yield issuance

A higher issuance in high yield bonds falls under the BB and B category, and few are rated in the CCC category. CCC rated bonds are highly distressed companies with relatively poor performance and few prospects of recovery.

The investor base for CCC rated bonds is very limited and is mostly issued in private, while BB and B rated bonds are highly liquid. They’re some of the best-performing and most preferred high yield asset classes, and they could be a good way to diversify your portfolio.

Continue to Part 5

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