MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Junk Bond Defaults on the far Horizon?

TSP_TransferTSP_Transfer
edited November 2013 in Fund Discussions
Default Surge Starting In 2016
But junk-bond guru Martin Fridson comes across as more mathematician than Meredith Whitney as he predicts today that the junk-bond market will see $1.5 trillion worth of defaults when this credit cycle finally ends..
http://blogs.barrons.com/incomeinvesting/2013/11/12/fridson-sees-1-5t-junk-bond-default-surge-starting-in-2016/?mod=BOL_hp_blog_ii

Comments

  • TedTed
    Dear TSP Transfer: Back in 2009 B of A predicted that 40% of all junk bonds would default by the year 2013. So far in 2013 the default rate is about 3%.
    Regards,
    Ted
  • SlowLane
    Reply to @Ted: In 2009, there was a huge peak in junk defaults and the default rate was 16%. I can understand the dire prediction.

    image
  • TedTed
    Reply to @SlowLane: Since 2009 I have held dozens of individual junk bond, and to this date have had only one failure, Mission Energy 7.75% June 2013.
    Regards,
    Ted
  • SlowLane
    Reply to @Ted: Congratulations on your great junk bond picking! It is no easy feat to have a lower default rate than the index.
Sign In or Register to comment.