High Yield Bonds

• High-Yield Bonds thoroughly explores every angle of this complex market, delivering statistics, research findings, and empirical facts guaranteed to help you understand the risks and rewards of high-yield investing.

• This hands-on reference shows you how to uncover issues that provide exceptional returns for acceptable risk.

• It acts as your on-call investment advisor in navigating this risky-yet-profitable market.

Table of Contents

Part I: Market Structure

• The High Yield Market

• Changes in the High Yield Market: A Historic Market

• The Leveraged Loan Market

• The Globalization of the High Yield Market

Part II: Security Risk Analysis

• Historical Default Rates of Corporate Bond Issuers, 1920-1996

• Almost Everything You Wanted to Know About Recoveries on Defaulted Bonds

• Moody's Rating Migration and Credit Quality Correlation, 1920-1996

• Modeling Bond Rating Changes for Credit Risk Estimation

• Real Interest Rates and the Default Rate on High Yield Bonds

Part III: Security Valuation

• Valuing Like-Rated Senior and Subordinated Debt

• Determinants of Spreads on New High Yield Bond Offerings

• Analyzing a High Yield Issue

• Valuing Bonds and Options on Bonds Having Correlated Interest Rate and Credit Risk

Part IV: Investing in Distressed Securities

• Do Seniority Provisions Protect Bondholder's Investments?

• Investing in Distressed Situations: A Market Survey

• Analyzing the Credit Risk of Distressed Securities

Part V: Corporate Finance

• Strategic Financing Choices for Emerging Firms: Debts versus Equity

• The Advantages and Disadvantages of Public versus Private Issuance of High Yield Debt Securities

• Managing Default: Some Evidence on How Firms Choose Between Workouts