Researches & Commentaries
2022.8.29
Focus on Superior Coupon Rate Strategies for High-yield Bonds and Credit Repair-brought Opportunities for Laggard Play amid the Eased Credit Risk and Continued Divergence
Hong Kong, 29 August 2022 -- The Research Institute of China Chengxin International Credit Rating Co., Ltd. (hereinafter referred to as “the CCXI Research Institute”) recently released a report titled “Focus on Advantages of Coupon Rate Strategies and Credit Repair-brought Opportunities for Laggard Play amid the Eased Credit Risk and Structural Market of High-yield Bonds”. According to the report, though the high-yield bond market saw its issue size drop significantly and trading activity decline in the first half of 2022 due to the structural supply-demand imbalance, the wealth index returned 3.10%, outperforming the Chinese government bond (CGB) and debenture indices, benefiting from the eased credit risk and the high coupon rate.