Where Do We Go from Here?

Glenn Yago and Susanne Trimbath

in Beyond Junk Bonds

Published in print May 2003 | ISBN: 9780195149234
Published online November 2003 | e-ISBN: 9780199871865 | DOI:
Where Do We Go from Here?

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This short introductory chapter provides a brief analysis of the high‐yield (junk bond) market in the USA in 2001 and 2002, discussing the multitude of influences upon it, including the September 11, 2001 terrorist attacks. It notes that any attempt to compare the impact of these attacks with previous historical events will be flawed because the combination of an act of war committed in the USA at the time of a recession has never before occurred. A table is presented that attempts to sort out the positive and negative effects of individual events and circumstances on the market for high‐yield securities, and a summary is given of the immediate damage to the credit markets in September 2001. It is suggested that there is at least anecdotal evidence of large cash positions sitting on the sidelines globally, so that any recovery could be significant.

Keywords: credit markets; high‐yield markets; junk bonds; recession; September 11 (2001); terrorist attacks; USA

Chapter.  1652 words. 

Subjects: Financial Markets

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