The high yield market today hardly resembles the freewheeling market of the 1980s and early 1990s. Back then, junk was often the market of last resort for battered issuers in need of financing. These days, second-lien loans are common. Issuers can suddenly decide to switch a proposed bond deal to a bank loan deal. And hedge funds rule the roost; they could ask for, and get, major changes in any deal. And yet, even as the complexity intensifies, the market has never been healthier. Defaults linger at record lows. New issuance volume is at record highs. Even battered CCC-rated issuers can find some form of financing. And everyone--issuers and buyers--has a greater choice of leveraged products.

For more on this:
- Here's an article from Investment Dealers' Digest (For FierceFinance readers)