What is high yield investment funds high yield bond? For a brief explainer on how the market works, check out this video, courtesy LCD and Paddy Hirsch. Paddy’s got a great video on how leveraged finance works.
The vast majority of loans are unambiguously private financing arrangements between issuers and lenders. Beyond the credit agreement there is a raft of ongoing correspondence between issuers and lenders that is made under confidentiality agreements, including quarterly or monthly financial disclosures, covenant compliance information, amendment and waiver requests, and financial projections, as well as plans for acquisitions or dispositions. These terms helped give the asset class some negative connotation in its more formative years. The asset class has matured into a large, liquid marketplace, however, which now attracts a broad swath of investors and multitudes of issuers. How big is the high yield bond market? The first real boom in the market was in the 1980s, however, when leveraged buyouts and other mergers appropriated high-yield bonds as a financing mechanism.