Investors Renew Their Appetite for Junk Bonds

The transcript discusses the current state of market issuance, highlighting a shortage due to maturing debt and limited new issuance. It explores how supply scarcity may mask credit risk in high yield markets and examines historical patterns where high yield led equities. The discussion also touches on fixed income concerns, particularly rates and leverage, and the artificial distinction between investment grade and high yield created by rating agencies.

What historical context is provided regarding high yield and its relationship with equity markets?

In what ways do credit problems in the triple B market affect the high yield market?