Oil prices and corporate high-yield spreads: Evidence from panels of nonenergy and energy European firmsOil pricesHigh yield spreadsNon-energy and energy European firmsPanel dataThis paper explores the potential impacts of oil prices on high-yield corporate bond spreads for the case of European non...
The purpose of calculating corporate bond spreads is to determine the value of the bond. This also helps investors assess the risk of a corporate bond investment. Investors assume a higher degree of risk when they purchase corporate bonds. In return for assuming this added risk, corporations issu...
stocks. In addition, high-yield bonds offer lower overall risk versus equities, given that bond holders are paid ahead of equity shareholders should bankruptcy occur. As the chart on page 3 illustrates, yield spreads of high-yield bonds compared to Treasury bonds historically have widened during ...
Advantages of a High-Yield Bond Spread High-yield bond spreads are beneficial to investors because they can be used to assess the credit markets and evaluate the state of the economy. For example, if the spread between two bonds becomes larger, it implies that there is a higher default risk...
Despite record-tight spreads in corporate bond markets, asset managers remain bullish on U.S. fixed income, bolstered by President-elect Donald Trump's election victory and the Republicans' control of the House and Senate, which are expected to reinforce pro-growth policies ...
HYS Vs. HYG: Little To Differentiate These HY Corporate ETFsRetired InvestorTue, Jun. 04, 20242 Comments 3 Trends Impacting HYG And High-Yield BondsJuan de la HozMon, Apr. 22, 202410 Comments Short HYG: High-Yield Spreads Are Likely To WidenCharles CranmerFri, Apr. 12, 202411 Comments HYG...
Corporate bonds Investors pour money into US corporate bond funds at record rate Demand to lock in yields helps push spreads on high-yield bonds close to their tightest level since 2007 February 26 2024 Sovereign bonds Bonds are back Pimco’s inflows are already almost equal to its 2023 total...
How Much of the Corporate-Treasury Yield Spread Is Due to Credit Risk? We show that credit risk accounts for only a small fraction of yield spreads for investment-grade bonds of all maturities, with the fraction lower for bond... Huang Jing-Zhi,M Huang - 《Review of Asset Pricing Studies...
current yields of various classes of high-yield bonds compared against investment-grade corporate bonds, Treasury bonds, or another benchmark bond measure. Spreads are often expressed as a difference in percentage points orbasis points. The high-yield bond spread is also referred to as credit ...
A high-yield bond, or junk bond, is a corporate bond that represents debt issued by a firm with the promise to payinterestand return the principal atmaturity. Junk bonds are issued by companies with poorer credit quality. Bonds are characterized by their credit quality and fall into one of...