Which factors indicate that in-depth credit analysis of high-yield bonds is important?
A) the large number of high-yield issues
B) the overall decline in quality of these bonds
C) the wide range of quality among these bonds
D) the growing complexity of these bonds
E) All of these are correct.

Question

Quizplus · Accepted Answer

All of these factors are correct and contribute to the importance of in-depth credit analysis of high-yield bonds. The large number of high-yield issues makes it crucial to distinguish between high-quality and low-quality issuers. The overall decline in quality and wide range of quality among these bonds emphasizes the need for careful analysis. Additionally, the growing complexity of these bonds, often including complex structures and covenants, makes thorough analysis essential.

Which Factors Indicate That In-Depth Credit Analysis of High-Yield Bonds