SSRN-Issuer Quality and Corporate Bond Returns by Robin Greenwood, Samuel Hanson

Fascinating. The simple version is that bond returns are low in periods when a higher percentage of low rated firms issue. Once again it suggests that markets are not as efficient as we used to think.SSRN-Issuer Quality and Corporate Bond Returns by Robin Greenwood, Samuel Hanson: "..time-series variation in the average quality of debt issuers may be useful for forecasting excess corporate bond