Salient to Investors:
Investors are shunning bonds from the neediest borrowers on a default rate at the highest level since 2009.
S&P says the default rate of these borrowers reached 27.2 percent in August, up 10 percentage points from a year earlier.
Dan Newhall at Vanguard said there’s not a whole lot of upside at these average prices as demand from institutions is far outstripping the net high-yield new supply, thus bidding up prices.
Read the full article at http://www.bloomberg.com/news/2012-10-12/vanguard-to-jpmorgan-dodging-neediest-borrowers-credit-markets.html