Why are corporate high yield bonds getting hit in this market? - corporate bond default rates
I'm trying to understand why high-yield corporate bonds are so weak in this market. I PHK, for example, closed High Yield Bond Fund. I understand that the credit crisis moves into the realm of the economy, because people are afraid that will increase the failure rate? Is this what is the weakness in charge? Thank you for your help.
(Please give no answers, just as the market sentiment - and I understand people are concerned about the specific risks)
Corporate Bond Default Rates Why Are Corporate High Yield Bonds Getting Hit In This Market?
7 comments:
Ok, since you say your goal is to understand, explain a few moments to see how it works. For more information you can contact me directly.
In the high-performance obligations due to the nature of the underlying investments. These bonds pay a "high performance" because they are much less secure, for any reason.
That makes the trade more like stocks volitatlity because of the risk-reward nature of the commitments.
If the investors are cautious on the run threat to security. Although the name "Bond" has a semblance of security, high performance, security and remove places in the area, where people flee.
I hope that makes sense for you.
Ok, since you say your goal is to understand, explain a few moments to see how it works. For more information you can contact me directly.
In the high-performance obligations due to the nature of the underlying investments. These bonds pay a "high performance" because they are much less secure, for any reason.
That makes the trade more like stocks volitatlity because of the risk-reward nature of the commitments.
If the investors are cautious on the run threat to security. Although the name "Bond" has a semblance of security, high performance, security and remove places in the area, where people flee.
I hope that makes sense for you.
Ok, since you say your goal is to understand, explain a few moments to see how it works. For more information you can contact me directly.
In the high-performance obligations due to the nature of the underlying investments. These bonds pay a "high performance" because they are much less secure, for any reason.
That makes the trade more like stocks volitatlity because of the risk-reward nature of the commitments.
If the investors are cautious on the run threat to security. Although the name "Bond" has a semblance of security, high performance, security and remove places in the area, where people flee.
I hope that makes sense for you.
Ok, since you say your goal is to understand, explain a few moments to see how it works. For more information you can contact me directly.
In the high-performance obligations due to the nature of the underlying investments. These bonds pay a "high performance" because they are much less secure, for any reason.
That makes the trade more like stocks volitatlity because of the risk-reward nature of the commitments.
If the investors are cautious on the run threat to security. Although the name "Bond" has a semblance of security, high performance, security and remove places in the area, where people flee.
I hope that makes sense for you.
special risks? What about all the risks are reassessed.
noo year, the narrow range of garbage and AAA is .. Now that reflect the fears of the high risk are persons who, as they think is right .... and the funds are withdrawn from the bidding process for high performance.
.... Wait 2 years ago to an issue of Iraqi debt was trading at a yield of 9% ..... Will you accept an additional 4% for the risk that Iraq is a country and repay its debts and devaluing the currency is not too soon>?
was not one or two scenarios of the risk ... There was a general revision of assessment of compensation for the risk of provoking to one price adjustment.
The high performance is another way of saying "high risk". The great concern about the subprime mortgage and there is a shortage of cash for subprime borrowers. This means that the rate increase, and bondholders have their existing investments in value.
The high performance is another way of saying "high risk". The great concern about the subprime mortgage and there is a shortage of cash for subprime borrowers. This means that the rate increase, and bondholders have their existing investments in value.
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