Moody’s forecasts rate to rise modestly to 3% by the end of 2013
Default rate expected remain below historical averages
Rate expected to end the year little change at 2.8%
With ample liquidity available, the rate is not expected to change much over the coming months
Canadian bonds have tighter covenants, which provide more protection for investors
Three issuers defaulted last month
Index remains at historically low level
High-yield companies appear to have the liquidity necessary to weather the ongoing economic uncertainty, Moody’s Investors Service says in a new report. The rating agency reports that its Liquidity-Stress Index (LSI), which measures corporate liquidity, continues to hold at historically low levels. The index, which falls when speculative-grade corporate liquidity appears to improve and rises […]
Moderate default rate forecast over the next year
Geof Marshall, vice president, portfolio management and portfolio manager at CI Investments Inc. and co-portfolio manager for CI Signature High Income Fund, explains his investment strategies for high yield corporate bonds and why they can mitigate risks and offer efficient returns in the current macro economic environment. He spoke at the TMX Broadcast Centre in Toronto.