Dip in non-investment grade paper marks improved balance sheets of firms

Category has lower share than before among rated instruments

Low-rated debt is in focus. The junk bond market in the United States (US) is rallying despite economic concerns. The premium investors seek for investing in debt that is more likely to default is shrinking in the US. In Europe, risky corporate bonds are in demand. In India, reports said there is a delay in payment for the country’s largest junk bond holder in May.

A credit rating reflects the chance that a borrower will default on the debt. Higher the rating, lower the chance of default. Risky companies’ debt below