Distressed spreads for non-distressed bonds: Overcoming the stigma of ‘junk bonds’

F Frick ()
Additional contact information
F Frick: Unigestion Asset Management

Journal of Asset Management, 2001, vol. 1, issue 3, No 7, 267-278

Abstract: Abstract This paper discusses the suitability of high-yield bonds as an asset class for asset managers. The author believes that, despite the current level of spreads which are at a level similar to that following the Milken crisis, current characteristics of the high-yield market show that this asset class offers an attractive opportunity for diversification, especially for optimisation of a bond portfolio. The aim of this study is to point out that, as with all great opportunities, there is a price to pay, in this case, the amount of work and due diligence that one has to carry out before investing successfully in the high-yield bond market.

Keywords: high-yield bonds; junk bonds; distressed spreads; optimisation of a bond portfolio (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/palgrave.jam.2240021 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:assmgt:v:1:y:2001:i:3:d:10.1057_palgrave.jam.2240021

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41260

DOI: 10.1057/palgrave.jam.2240021

Access Statistics for this article

Journal of Asset Management is currently edited by Marielle de Jong and Dan diBartolomeo

More articles in Journal of Asset Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().