Investment Week (March 12)
2019/ 03/ 14 by jd in Global News
“BBB corporate bonds, the lowest investment grade rating band in which a company’s debt rating can reside, have now grown to make up more than half of the entire global investment grade (IG) market.” When the next downturn strikes,”there could be a cascade of ‘fallen angels’, companies that are downgraded from IG to high yield (HY), swamping the smaller HY market and causing problems for investors as liquidity dries up and imperfect market clearing mechanisms struggle to cope.”
Tags: BBB, Bonds, Debt, Downgrade, Downturn, Fallen angels, High yield, Investment grade, Liquidity, Market clearing, Strikes
