why is notching important 
notching is important because it helps investors to make informed decisions about the creditworthiness of the various bonds and debt instruments issued by the same issuers by using easy to understand ratings grades or scores by understanding the likelihood of default investors can determine the level of risk they are willing to take on when investing in a particular bond or debt issuer this is especially important for investors who are considering purchasing high yield bonds as these bonds are generally considered to be more risky than investment grade bonds notching can also be used by bond and debt issuers to determine their own creditworthiness as it can help them to identify any areas where they may need to improve their financial health in order to attract investors 