Defaults and Returns on High-Yield Bonds: Lessons from 1999 and Outlook for 2000-2002

Altman, Edward I.; Hukkawala, Naeem; Kishore, Vellore
April 2000
Business Economics;Apr2000, Vol. 35 Issue 2, p27
Academic Journal
Business economists must weigh the benefits from increased leverage with the costs (bankruptcy and agency costs) of heightened financial risk and financial fragility. This study serves as a reminder, both to fixed income and equity investors, that even in a robust economy there is still no substitute for careful fundamental analysis at the firm level.


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