Investing in Junk Bonds: Inside the High Yield Debt Market
Originally printed in 1987, this book examines the rise and operation of the high-yield debt market typified by the junk bond. It discusses expected yields, realized returns, default, market growth, credit quality, mergers and acquisitions, investment strategies, and related topics. Altman teaches f
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
annual return assets bankruptcy basis points billion bond rating Chapter CM CM CM CO CM CM CO rH CM rH rH CM tx CO CO CO companies Corp corporate debt credit quality deals debt issues default rate default risk dollar downgraded Drexel Burnham Lambert duration Exhibit firms Funds Percent high yield bonds High Yield Composite high yield debt high yield portfolios Holding Issuer Total HY Composite Industries interest rates investment grade Issuer Holding Issuer Issuer Total Funds junk bonds LBOs low-rated maturity Morgan Stanley mutual funds Number of Funds Percent of Issuer period Quartile rH CO CM rH CO rH rH rH CM rH rH rH rH TH rH tx Standard & Poor's strategies Table takeovers tx CM tx rH tx tx tx yield spread yield to maturity zero coupon bond Zeta scores
Page 11 - In addition to the promised superior yields and realized impressive returns, the high yield (or -junk") sector now offers considerable liquidity and diversification potential. It has been estimated that total outstanding debt hi this area was over $80 billion by mid-1985.
Page 13 - In effect, rising interest rates caused substantial reductions in the market value of their holdings, more than offsetting the coupon income these bonds generated. The decline in rates in 1982 and 1984 saved investors in long-term government bonds from having a negative return over the entire period. With high quality bond returns fluctuating at or below zero returns from 1 978 through 1981, portfolio managers began looking for new opportunities to boost their returns.
Page 12 - T-bills and on 10 year government bonds rose from 7.4%*and 8.4 % yield levels respectively in early 1978, to record heights, peaking in mid-1981 at 17.2% and 15.3 % respectively. By the fourth quarter of 1982, T-bQIs had dropped to 8 % while 10 year governments were near the 10.5% level.