High-yield Debt - High-yield Bond Indices

High-yield Bond Indices

High-yield bond indices exist for dedicated investors in the market. Indices for the broad high-yield market include the CSFB High Yield II Index (CSHY), Citigroup US High-Yield Market Index, the Merrill Lynch High Yield Master II (H0A0), the Barclays High Yield Index, and the Bear Stearns High Yield Index (BSIX). Some investors, preferring to dedicate themselves to higher-rated and less-risky investments, use an index that only includes BB-rated and B-rated securities, such as the Merrill Lynch Global High Yield BB-B Rated Index (HW40 ). Other investors focus on the lowest quality debt rated CCC or Distressed securities, commonly defined as those yielding 1500 basis points over equivalent government bonds.