Jan
3rd
Sun
3rd
Barron’s: End of a Junk Rally
From Barron’s “End of a Junk Rally”:
Through the first 11 months of 2009, the return on the Merrill Lynch High Yield Master II Index was 56.3%, and it’s likely that 2009 ended with an annualized return of nearly 60%. High yield option-adjusted spreads, or yield margins, have returned to their 10-year historic average of 6.56 percentage points above comparable Treasuries. That’s still a decent yield, but it’s nothing like the average spread of 21.50 points during the worst of the credit crisis.
