## figure1-8

## Source details

**Canonical URL:** [figure1-8](https://www.imf.org/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-8.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-8.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-8.pdf.json)

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### Overview
- Title: Figure 1.8. Valuations of Corporate Bonds
- Key narrative lines from source:
  - "A still-high share of negative-yield assets ...... has supported demand for risky assets and compressed credit spreads."
  - "This has spurred the new issuance of risky bonds in lower-credit-quality buckets."
  - "Profitability has helped reduce debt ratios."
  - "As a result, interest coverage ratios have dipped, except for the United States and China."
  - "Highly levered firms are more likely to be impacted by the US corporate tax reform."

### 1. Share of Negative-Yielding Global Bonds
- Years shown on chart: 2013 14 15 16 17
- Dollar values displayed: $7.6 trillion; $10.6 trillion
- Vertical axis label (percent): 0 5 10 15 20 25

### 2. Credit Spreads per Rating Bucket, 1999–2018
- Panel note: "In panel 2, the full sample is from 1999 to 2018."
- Vertical axis label (Basis points) shows range markers: 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
- Legend items/types listed in source:
  - US BBs
  - US Bs
  - US CCCs
  - EU BBs
  - EU Bs
  - EM BBs
  - EM Bs

### 3. Share of the Lowest Credit Bucket
- Panel label: "(Percent)"
- Panel note: "Lower-grade (CCC-rated) issuance as a percent of high-yield bond and leveraged loan issuance (left scale)"
- Additional label: "Lower-grade (BBB-rated) bonds in the investment-grade index (right scale)"

### 4. Debt Ratios
- Panel label: "(Net debt to EBITDA, percent)"
- Panel note: "In panels 4 and 5, the full sample from 1999 to 2005 from the source is limited."
- High-levered definition (from note): "In panel 6, high leveraged is defined as firms with net debt divided by EBITDA > four times."
- Sectors excluded (from note): "Real estate and utilities sectors are not included."
- Accounting acronyms (from note): "EBIT = earnings before interest and taxes; EBITDA = earnings before interest, taxes, depreciation, and amortization; EM = emerging market."

### 5. Interest Coverage Ratios
- Panel label: "(EBIT to interest expense)"
- Chart axis markers shown in source: 0 2 4 6 8 10 12
- Time axis markers shown in source: 1999 2001 03 05 07 09 11 13 15 17:Q3
- Source statement: "As a result, interest coverage ratios have dipped, except for the United States and China."

### 6. Comparison among High- and Low-Leveraged US Firms
- Panel items/labels and numbers presented in source text:
  - "Number of firms"
  - "Gross debt proportion where interest expense > 30 percent EBITDA (percent)"
  - Axis markers and numbers appearing in source: 0 14 0 4,000 500 1,000 1,500 2,000 2,500 3,000 3,500
  - Average maturity (years) markers and numbers shown: 0 12 2 4 6 8 10 Average maturity (years)
  - Standalone numbers appearing in figure area: 6 11 29 76 1 5 50 45 40 35 30
- Interpretive note in source: "Highly levered firms are more likely to be impacted by the US corporate tax reform."

### Data sources and notes (as listed in figure)
- "Sources: Bloomberg Finance L.P.; ICE Bank of America Merrill Lynch; JPMorgan Chase & Co; Standard & Poor’s; and IMF staff calculations."
- Additional note text from figure retained above.

*Figure 1.8. Valuations of Corporate Bonds — source content as provided.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-8.pdf_