High Yield Bond Primer

There's a SB for you. Thanks for sharing...interesting stuff.

Thanks, man. I love fixed income.

Thanks for sharing. Those interested may also want to check out the following Dealbook article from last week:

http://dealbook.nytimes.com/2012/08/15/risk-builds-as-junk-bonds-boom/

2012 new issues are on track to hit the 2010 record of $264bn. Investors are pouring lots of money into HY since they are starved for yields, even as prices are already high. Some say there's not much room left for gains, only heartache. This is especially true because the high prices have led to lower yields. Historical rates are 10%+ but only 6.6% now, which isn't exactly "high yield" territory anymore.

Seems like high risk companies offering lower yields is a recipe for disaster for investors. Not enough risk premium anymore. I think those who are chasing yield up the risk spectrum are going to get burned.

Thoughts? Will the HY rally collapse anytime soon?