This table reports the mean and median of the yield spreads of newly issued bonds across divide Yield quintiles The sample includes newly issued corporate bonds during the period of 1970-2005 Of all non-financial firms as reported by SDC for which corresponding accounting and stock price information can be obtained from COMPUSTAT and CRSP databases.ln Panel A are reported all issues individually while Panel B reports average of multiple issues floated in one year.
Shows a similar pattern as Panel a There appears to be a non-linear association between payout and credit spreads