Jacphanie Cheung , Associate, Corporate Infrastructure Ratings, Standard PoorÆs
Institutional investors have beaten a path to the high-yield market in ever-larger numbers over the past few years, but they'll need to keep a close eye on credit risks. Standard Poor's default studies show that when things go wrong, this type of asset class can fall into a distressed situation much more quickly than investment-grade credits.
Standard Poor's applies similar analytical methods to all credit classes, but minutely scrutinizes several areas of particular concern for high-yield, or speculative-grade, credits, such as cash flow, liquidity and liability risk management, and structural issues. It also applies stress...
