A bit more sign of froth in the high-yield market, covenant quality on junk bonds hit a...

|By:, SA News Editor

A bit more sign of froth in the high-yield market, covenant quality on junk bonds hit a record-low 4.15 (on a scale from 1 best to 5 worst) in November, says Moody's. Most curious were weaker-rated bonds having worse covenant quality than higher-rated ones - completely at odds with precedence and logic.