HIGH YIELD BOND STUDY.

SEC. 1201. HIGH YIELD BOND STUDY. (a) In General.— The Comptroller General, in consultation with the Securities and Exchange Commission, the Federal Home Loan Bank Board, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Savings and Loan Insurance Corporation, the Federal Deposit Insurance Corporation, the Secretary of the Treasury, and the Secretary of Labor shall study on a comparative basis to other types of investments made by federally insured institutions the issuance of and investment in high yield, noninvestment grade bonds during the 5 years prior to the date of enactment of this Act, including— (1) the identity and rating (as determined by Moody’s, Standard and Poor’s, or other nationally recognized bond rating house) of the issuers of these bonds; (2) the identity of the major purchasers of these bonds, including but not limited to federally insured depository institutions; (3) the percentage of the total amount of high yield, noninvestment grade bonds that are issued as a method of financing corporate takeovers; (4) the identity of the purchasers including, but not limited to, federally insured depository institutions that invest in high 101 STAT. 661yield, noninvestment grade bonds that are issued as a method of financing corporate takeovers; (5) the purposes for which high yield, noninvestment grade bonds are issued other than for financing corporate takeovers; (6) a summary and analysis of the adequacy of current State and Federal laws that regulate investment in high yield, noninvestment grade bonds, by investors including, but not limited to, federally insured depository institutions and pension funds; and (7) a review of the impact of the issuance of and investment in high yield, noninvestment grade bonds upon corporate debt as it relates to Federal monetary policy. (b) Other Types of Direct Investment.— In preparing this study, the Comptroller General, in consultation with the aforementioned Federal agencies, shall also examine all other types of direct investments made by Federally insured institutions and the effect these investments have had on Federal insurance funds. (c) Public Hearing.— In addition to the collection of information through surveys, public document review, interviews, and other information-gathering methods, at least one joint public hearing shall be held during the course of conducting the study. (d) Reporting Date.— The Comptroller General shall transmit a report containing the results of the study under this section to the Congress not later than 6 months after the date of enactment of this Act.