Junk Blitz Making September Busiest Since 2008: Credit Markets
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The riskiest borrowers are leading the busiest September in at least six years for speculative-grade bond sales in the U.S. as Moody’s Investors Service warns that protections in the debt are declining.
J.C. Penney Co., the retailer whose liquidity Goldman Sachs Group Inc. warned a year ago was under strain, is among issuers that have sold or are planning more than $17.5 billion in bonds this month, according to data compiled by Bloomberg. AK Steel Holding Corp., which hasn’t posted an annual profit since 2008, sold $430 million of notes. Clear Channel Communications Inc., the most leveraged U.S. broadcaster, raised $750 million.