I think at least 1/10 should fail with assets at least partially insufficient to cover. So going bellow 5-10% above government bonds says something very odd about the market.
(I think in past markets most companies in this class would have to sell stock since 20% will do very well and 10% fail so no one would accept the downside at a reasonable bond rate. The market is confused by the low underlying rate which IMO means the end of expansion to new markets, hence the disruptive only nature of the current market.)
(I think in past markets most companies in this class would have to sell stock since 20% will do very well and 10% fail so no one would accept the downside at a reasonable bond rate. The market is confused by the low underlying rate which IMO means the end of expansion to new markets, hence the disruptive only nature of the current market.)