tag:blogger.com,1999:blog-11027528911364475.post260945362476521745..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: High Yield vs. Investment Grade CorporatesJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-11027528911364475.post-9286257057728737032010-03-16T13:47:54.693-07:002010-03-16T13:47:54.693-07:00Very nice analysis!
I would add one caveat to any...Very nice analysis!<br /><br />I would add one caveat to any historical analysis of spreads, namely that junk is junkier now than in the past, that is, the proportion of lowest-rated bonds is now much higher than the historical average. So the spreads are not completely comparable over time.<br /><br />This just strengthens the conclusion that junk is not a particularly promising bet right now.<br /><br />Here is a <a href="http://www.clearonmoney.com/dw/doku.php?id=investment:commentary:2010:02:17-junk_bonds_are_now_a_risky_bet" rel="nofollow">post of mine</a> that covers the ratings distribution issue.<br /><br />Jim Fickett<br />ClearOnMoney.comJIm Ficketthttp://www.clearonmoney.comnoreply@blogger.com