The High-Yield Squeeze

Albano, Christine
March 2006
Bond Buyer;3/1/2006, Vol. 355 Issue 32329, p1
Trade Publication
The article reports on developments concerning the high-yield municipal bond market in the United States as of March 1, 2006. It discusses the limited supply of the high-yield bonds and its impact on the rate of return and credit spreads. The article also reports on the decision of some large institutional investors to distance themselves from the sector because of the risks associated with low-quality and nonrated paper. Vanguard Group senior portfolio manager Reid Smith expresses his views regarding the demand for risky paper at lower yield levels.


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