Breadcrumb Home November 12, 2012 12:00 AM Junk to the rescue Speculative-grade bonds have been the answer for yield-starved investors in 2012. Tweet Share Share Email More Toggle Fullscreen Share Source: J.P. Morgan The J.P. Morgan Global High Yield index returned 13.4% through Oct. 31, compared with 4.7% for the Barclays Capital Global Aggregate Total Return index. Toggle Fullscreen Share Source: J.P. Morgan The number of defaults in the past two full years and year to date has been 22%, 22% and 41%, respectively, below the median number of defaults since 1980. Toggle Fullscreen Share Source: Bloomberg LP Asset coverage ratios measure a firm's ability to repay debt. While ratios have come down from 2011 levels, they have trended upward the past two quarters. Toggle Fullscreen Share Source: Bloomberg LP Revenue growth for investment-grade issuers is forecast to decrease by an average of 0.44% over the next four quarters, while revenue for high-yield issuers is expected to rise by an average of 0.18%. Some argue they're becoming too risky and expensive, but issuers' fundamentals appear strong.