A road map for understanding and analysing Asia's high-yield credits

Standard & Poor's explains how it analyses high yield credits and why this type of asset class can become distressed more quickly than investment grade credits.
By Raymond Woo , Director, Corporate Infrastructure Ratings, Standard PoorÆs
Jacphanie Cheung , Associate, Corporate Infrastructure Ratings, Standard PoorÆs


Institutional investors have beaten a path to the high-yield market in ever-larger numbers over the past few years, but they'll need to keep a close eye on credit risks. Standard Poor's default studies show that when things go wrong, this type of asset class can fall into a distressed situation much more quickly than investment-grade credits.

Standard Poor's applies similar analytical methods to all credit classes, but minutely scrutinizes several areas of particular concern for high-yield, or speculative-grade, credits, such as cash flow, liquidity and liability risk management, and structural issues. It also applies stress...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222