The Risk Premium for High Yield Bonds and Leverage Loans

3min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

There's no question in my mind that we're going to see rising default rates, even if we don't have a recession. The required rate of return or the spread over risk-free treasuries is still below the historic average. And it could even go to 8, 9, 10% default rates, which is one definition of a credit crisis.

In this week’s Primary View podcast, Dr. Edward Altman, the legendary bankruptcy expert, discusses the outlook for debt-saddled zombie companies with Reorg reporter Gaurav Sharma. The New York University professor, best known for the Z-Score formula, cautions that bankruptcy cases are likely to increase in 2024-25, even if the U.S. avoids a recession. If you are not a Reorg subscriber, request access here: go.reorg-research.com/Podcast-Trial We're looking for feedback to improve the podcast experience! Please share your thoughts here: www.research.net/r/Reorg_podcast_survey For more information on our latest events and webinars: reorg.com/resources/events-and-webinars/ Sign up to our weekly newsletter Reorg on the Record: reorg.com/resources/reorg-on-the-record/ #leveragedfinance #highyield #restructuring #performingcredit #distresseddebt #debtrestructuring #leveragedloans