Buyers Should Be Aware of Falling Commodity Prices
With so many energy and basic materials companies’ credit ratings having been downgraded in the face of weakness in commodity prices, investors in the high yield space should take note of changes to the pertaining indexes. Bonds that were previously rated investment grade may have been pushed down to the high yield segment, while those of the highest quality in the junk bond spectrum could have been pushed down to the B and CCC areas, denoting even riskier fare.
So what does this mean, then? Continue reading “High Yield – What’s in Your Index?”