TIAA-CREF High Yield Fund
High Yield Bond Issuance Hit 2016 Record Last Week
High yield bond issuance surged last week and hit its highest level in 2016 yet due to continued growth in volume.
High-Yield Bond Issuance Fell after the FOMC’s Dovish Statement
Last week brought the total US dollar-denominated issuance of high-yield debt to $24.3 billion in 2016 YTD. It’s 71.0% lower than the same period in 2015.
Investors in Junk Bond Mutual Funds Should Worry about Liquidity
If liquidity declines for junk bonds, the liquidity risk premium would rise. This would increase the coupon set on the bond. It will raise the borrowing cost for a company.
Why Bond Market Liquidity Has Been Making Headlines
Liquidity in bond markets is crucial because this market provides sources for the government and corporates to raise money for their projects and ventures.