6. Special Considerations of High-Yield, Sovereign, and Municipal Analysis
j. explain special considerations when evaluating the credit of high yield, sovereign, and municipal debt issuers and issues.
Why are high-yield bonds issued?
High-yield bonds are issued by organizations that do not qualify for investment-grade ratings.
What are two types of municipal bonds?
- General obligation (GO) bonds depend on the general creditworthiness of a municipality to repay the debt.
- Revenue bonds support specific projects.