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

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.
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  • WisPokerGuy
    , contributor
    Comments (980) | Send Message
     
    I would appreciate any analysis regarding this story... Specifically, what type of "forth" is the story referring to? I've heard "high yield bubble" warnings being sounded, but I'm unsure exactly what people are referring to.

     

    I've been a long term investor in both JNK and HYG and am looking for some guidance here.

     

    Thanks in advance.
    11 Dec 2012, 07:10 PM Reply Like
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