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Journal of Finance Vol. 48 No. 1 1993

Defaults of Original Issue High-Yield Convertible Bonds.

Eric S. Rosengren

Abstract

Recent studies using aging analysis have found high rates of default for rated, nonconvertible high-yield bonds. This paper examines the remainder of the market and concludes that rated. and nonrated convertible high-yield bonds had significantly lower defaul t rates. It also provides some evidence that nonrated, nonconvertible securities may have lower default rates. Even after controlling for issue size and coupon rates in a logit model, these differences rema in statistically significant.

Volume
48
Issue
1
Pages
345-62
Sources
bibtex:phds-export.bib

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