• High Yield Debt: Credit Bubble and Litigation Risks
  • April 29, 2014 | Authors: Scott J. Greenberg; J. Eric Maki; Howard F. Sidman; Jayant W. Tambe; Michael O. Thayer
  • Law Firm: Jones Day - New York Office
  • The past few years have seen a surge of high yield debt (“HYD”) issuances. By some accounts, issuers sold more than $400 billion in HYD in 2012 and more than $500 billion in 2013, and the HYD markets are off to a healthy start in 2014. With yields on U.S. Treasuries, money market funds, and other investments depressed as a result of unprecedented monetary policy in the U.S. and EU, demand for HYD products continues to rise, fueled by yield-seeking investors. This increased demand has caused HYD bond prices to rise and yields to fall.