S&P reports today that the number of junk bonds with extremely high yields has fallen to its lowest level for the year. A bond is considered junk if it receives a credt rating of BB or below and it becomes distressed if it yields 1,000 basis points – or 10 percent – above the Treasuries. Distressed debts have now fallen to 34% of all junk bonds from the record of 86% in December. The average, however, only stands at 15.7%.
News courtesy of MarketWatch. Read more HERE.