High yield debt

I was hoping that those who work in high yield research could share some of your thoughts on the space. What do you find interesting about working in the industry? General likes, dislikes? Any books, blogs or other websites that you’d recommend? Rankings of top firms? Basically, whatever you want to share on HY would be great. I saw an earlier post regarding a specific issue in HY–it looks like accountant23, aic, and buddha might be some of the experts…

I like looking at various components of the capital structure. There are numerous relative value trades to be made with bank, bonds, CDS/LCDS and equity as opposed to just equity.

High yield debt sounds interesting. You do FI analysis, but you also have to pay close attention to the equity side of things, since HY suggests that payments might not be happening and that would show up in the equity side of things. If you’re not sure whether you like equity or FI more, HY is probably a good place to figure out which you like better (or both equally). These times are probably times where skill in HY really comes in handy. A lot of businesses are probably in for pain. Figuring out which ones are going to be able to pay and which ones aren’t will net you more relative to competitors than you would in a low volatility environment, assuming you have some skill at it.

Good stuff. accountant23–do you have any favorite HY books or websites? It doesn’t seem like there’s a lot out there.