The structural issue at work encouraging the deal - making is that cash flow yields are markedly
above junk bond yields, similar to the environment during the late «80s when the market in junk bonds flourished.
Not exact matches
For example, it does not include euro
bonds («reverse Yankees») that are hot in Europe, where
junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade
yield is just
above zero.
High -
yield bonds (sometimes referred to as
junk bonds) typically offer
above - market coupon rates and
yields because their issuers have credit ratings that are below investment grade: BB or lower from Standard & Poor's; Ba or lower from Moody's.
That is
above the average
yield on U.S.
junk bonds, which is 9.4 percent according to Merrill Lynch data.