Mixed Bag for Risky Debt Amid Divided Credit Market

The video discusses the current state of the credit market, highlighting the demand for risky debt and the bifurcation in corporate credit. Lisa Brown Woods provides insights into the performance of triple B and triple C rated bonds, noting the impact of the energy sector on these bonds. The video also explores current yield trends, emphasizing the risks associated with investing in the riskiest companies.

What is the current trend in the corporate credit market?

• Bifurcation with demand for risky debt and shunning of other credit slices

• Increasing demand for all types of corporate credit

• Decreasing demand for all types of corporate credit

• Stable demand across all credit types

How have triple B rated bonds performed over the past 12 months?

• They have lost nearly 6%

• They have returned about 15%

• They have returned about 3%

• They have remained stable

What is the yield of triple C rated bonds currently?

• About 3%

• Nearly 11%

• About 6%

• Nearly 15%

What factor has contributed to the suffering of junk bonds?

• Disruption in the energy sector

• Increased demand for junk bonds

• High oil prices

• Stable energy prices

What challenge do investors face in the current credit market?

• Avoiding high returns

• Finding yield without excessive risk

• Investing in stable markets

• Finding low-risk investments