- Beginning in 2016, Fridson sees the high-yield default rate averaging 8.4% over the following four years - this compares to the long-run average of 4.5% and the current rate of just 2.5%. Putting those numbers in perspective, it means the number of issuers defaulting will be triple that during the 2008-09 crisis, and double the number defaulting in the 5-year surge beginning in 1999.
- For those who have bid up junk bond prices to an average of 103.2 cents on the dollar, the average yield down to 5.8%, and remain focused on interest rate risk instead of credit risk ... you've been warned.
- Related ETFs: HYG, JNK, BKLN, HYS, HYLD, SJNK, PHB, BSJF, SRLN, SJB, SNLN, BSJE, BSJD, IHY, FTSL, ANGL, BSJI, BSJG, HYXU, PGHY, XOVR, UJB, BSJH, QLTC, SHYG, BSJK, BSJJ
Fridson sees surge in high-yield defaults
Nov 12 2013, 15:52 ET