Understanding Aggregate Default Rates of High Yield Bonds
6 Pages Posted: 21 Jul 2007
Date Written: May 1996
What explains the wide swings in the default rate on high yield bonds in recent years? Differences in credit quality from year to year account for much of the observed variation in default rates, but economic conditions and the age of bonds have also played a role.
Keywords: default rates, high-yield bonds, credit quality
JEL Classification: E44, G2, G3
Suggested Citation: Suggested Citation