- Reporting a decline in the high-yield default rate to 1.7% at the end of Q3 - down from 1.9% a quarter earlier, about a six-year low, and vs. the 4.4% average since 1993 - Moody's says not to expect much of rise in the foreseeable future.
- "Forward indicators such as our Liquidity Stress Index (LSI) and a minimal number of very low-rated issuers support a low default forecast," says Moody's, which sees the rate ticking higher to 2.8% in one year.
- Just $1B of high-yield debt defaulted in Q3, way down from $45B in Q2 ($39B of that was Energy Future Holdings).
- ETFs: HYG, JNK, HYLD, SJB, ANGL, HYLS, UJB, XOVR, QLTC