High yield is now far more solid than it has ever been because risky lending migrated to private credit; over half the high-yield market is BB, its technicals are strong, while private credit saw too much money flood in too quickly, used spray-and-pray origination, and now faces a default cycle likely worse than backward-looking numbers suggest.
Credit rating agencies are a stubborn oligopoly because investors and mandates need a common language of credit; their letter ratings are more accurate than critics think, the designation is enshrined in law, and AI is unlikely to displace the need for a Moody's or S&P rating brand.
Credit rating agencies are a stubborn oligopoly because investors and mandates need a common language of credit; their letter ratings are more accurate than critics think, the designation is enshrined in law, and AI is unlikely to displace the need for a Moody's or S&P rating brand.