The Incredible Shrinking Default Cycle

Shepherd, Bill
July 2006
Investment Dealers' Digest;7/24/2006, Vol. 72 Issue 29, p26
Trade Publication
The article provides insights of regarding the effects of default cycle on investment market in the U.S. The people expected that defaults on high-yield debt will become a problem for underwriters and investors in the second quarter of 2006, just the way it happened in 1990-1991 and 2001-2002. Instead, this did not happen because of buoyant economic activities and market structural changes that resulted to the disappearance of default cycle.


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