Search Results for: junk bonds

Proportion of U.S. Junk Bonds Maturing Within Four Years A third of the $1.2 trillion U.S. junk bonds matures in the next four years. This proportion is highest in decades. Image: Bloomberg

Correlation – CCC vs. BBB-rated U.S. Corporate Bonds Investors rush into junk bonds. Is it time to worry? Image: Arbor Research & Trading LLC

Corporate Bonds – Share of Market Value in Bloomberg Barclays USD IG (AAA, AA, A, BBB) Credit quality is deteriorating, as the amount of BBB-rated bonds, one step away from junk bonds, has doubled since 1990. Image: Deutsche Bank Global Research

Corporate Bonds: IG Downgrade to HY and BBB Share of U.S. IG Market This chart highlights the resilience of BBB-rated bonds. BofA believes that there is little risk that IG ratings will fall to junk status in the next recession. Image: BofA Global Research

Cyclicals to Defensive Stock Ratio and Treasury Bonds Market internals, the preference for large over small and quality over junk, suggest that the recovery will be modest. Image: Morgan Stanley Research

Asia/U.S. High Yield Bond Spread Asian junk bonds look attractive relative to U.S. junk bonds. Image: Morgan Stanley Wealth Management

Annual Proceeds from High-Yield U.S. Corporate Bond Sales Are investors at risk of making poor investment decisions by rushing into junk bonds? Image: Financial Times

Duration in Investment Grade and High Yield Corporate Bond Indices While yields on junk bonds are at record lows, average durations have been shortening for HY bonds and increasing for IG bonds since the 2000’s. Image: Deutsche Bank Global Research

Share of Market Value in Bloomberg Barclays USD IG Since 1990, the amount of BBB-rated bonds has doubled. This is only one step away from junk bonds.  Keep in mind that many investment grade investors own BBB-rated bonds, but they are not allowed to hold junk-rated bonds. So, any drop in the credit ratings could…

U.S. Corporate Bond Ownership More than 25% of U.S. corporate bonds are held by insurance companies. Many investment grade investors are not allowed to hold junk-rated bonds. Any drop in the credit ratings could amplify the next recession. Image: NBF Economics and Strategy