Average Yield On Junk Bonds Exceeds 20%

November 20, 2008 at 1:18 pm  ·  Category: Bonds, Macro Economics, Market Commentary, Sentiment Analysis

This is really off the charts in terms of anything we have ever seen.

Martin Fridson, CEO, Fridson Investment Advisor, a non-investment grade debt specialist

Junk bonds on average now yield more than 20% for the first time ever (BeSpoke Chart).

These kinds of yields suggest widespread concern about the very survival of many of these companies.

It’s also a sign of extreme fear among investors as very few want to hold anything with the slightest bit of risk.

Posted by Greg Feirman  ·  Trackback URL  ·  Link