5% YTW for High-Yield 'Not Too Shabby': Creditsights' Cisar

The video discusses the concept of yield to worse, market volatility, and the attractiveness of a 5% yield in high yield investments. It examines the credit markets, noting that credit spreads remain stable, indicating a low default environment. The discussion also covers the potential impact of rising interest rates on corporate debt, highlighting that current borrowing conditions remain favorable. The video concludes with a look at corporate cash balances and the ability of companies like Microsoft to raise large amounts of capital.

What yield percentage was considered attractive for high yield bonds according to the transcript?

• 6%

• 3%

• 4%

• 5%

What is the Federal Reserve's stance on stock market sell-offs in relation to credit markets?

• They are highly concerned about stock market sell-offs.

• They focus more on the behavior of the credit market.

• They only consider the stock market's performance.

• They ignore both stock and credit markets.

What is the expected default environment for investors this year?

• Uncertain default environment

• Very low default environment

• Moderate default environment

• High default environment

What is a potential future issue for issuers as rates continue to rise?

• Decreased access to liquidity

• Higher default rates

• Lower investment grade ratings

• Increased borrowing costs exceeding payment ability

How have jumbo deals in the investment grade and leveraged finance markets changed in recent years?

• They have become more normal.

• They have decreased in size.

• They have remained the same.

• They have become less common.