Junk Bond Sales Set Record as Investors Waiver: Credit Markets - Bloomberg.com
Companies sold $33.7 billion of junk bonds in April, a record for the month, with borrowers rushing to issue before investors pull back from the riskiest securities.
Moody’s Investors Service says issuance may rise 10 percent this year, while investment-grade sales drop 7 percent. OnCure Holdings Inc., a manager of radiation oncology treatment centers, and American Petroleum Tankers LLC, an affiliate of Blackstone Group LP, are among companies planning to sell high-yield bonds.
While issuance soars and cash streams into the market, yields on speculative-grade debt rose last week relative to government bonds for the first time since the period ended Feb. 26, according to Bank of America Merrill Lynch index data. The rise underscores concern that Europe’s growing fiscal crisis and an investigation into Goldman Sachs Group Inc. may slow the economy.
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