RT Journal Article SR Electronic T1 Defaults and Returns on High-Yield Bonds JF The Journal of Portfolio Management FD Institutional Investor Journals SP 58 OP 73 DO 10.3905/jpm.2004.319931 VO 30 IS 2 A1 Edward I. Altman A1 Gaurav Bana YR 2004 UL https://pm-research.com/content/30/2/58.abstract AB The year 2002 was remarkably difficult on many fronts for most financial markets. For the high-yield bond market, it was again a year of record amounts of defaults ($97.9 billion), which contributed to low recovery rates and slightly negative absolute returns. The default rate registered a record 12.8%, based on $757 billion outstanding. Despite these record default totals and rates, the market's decline was orderly, with little panic, and the year actually ended with reduced defaults and highly positive returns in the fourth quarter—a harbinger of a broad-based comeback in the high—yield bond and defaulted debt markets in 2003.