Summary
NEW YORK (IFR) - The plunge in global risk assets that followed Standard & Poor's downgrade of the US credit rating triggered the worst day in the high yield market for more than two years this week.
But far from threatening to derail the asset class, the subsequent flight to quality and drop in Treasury yields could actually work in the market's favor.See the full content of this document
Extract
Falling Treasury Yields a Boon for High Yield Bonds
High yield bonds were hit particularly hard as investors - increasingly anxious about global economic growth - hit the panic button on risk.
The CDX HY16, an index of derivatives used by invest...See the full content of this document
