https://www.fa-mag.com/news/sweet-are-the-uses-of-adversity-four-areas-for-superior-returns-in-credit-markets-56845.html?section=68Sweet Are The Uses Of Adversity—Four Areas For Superior Returns In Credit Markets
/At peak spreads in March, the market had priced in an implied default rate as high as 50% (current levels imply ~35%). Since then high-yield and investment grade corporate bond issuers have been busy issuing new debt and restructuring existing debt in an effort to provide them with additional liquidity as the economy works though the major recession caused by the COVID-19 pandemic. In addition, state and local governments are experiencing severe shortfalls in sales and income tax revenues and face severe budget challenges as they reach fiscal year end June 30 and plan budgets for 2021./
we have private May/Macy Corp bonds, they sent letters corp action trying to redeem at much cheaper rates for what its worth...think many retailer companies are doing same thing or get new notes structured....unless economy open back 50% or fully these companies cannot stand in sidelines for too long ...
