Canadian Junk Market Freezes as Poloz Compounds Oil Collapse
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If the Bank of Canada’s surprise interest rate cut was meant to spur companies to borrow, it’s not working in the nation’s high-yield bond market.
Even after the central bank lowered borrowing costs on Jan. 21, the current quarter is the first in three years without a single company tapping Canada’s junk-bond market for funds, according to data compiled by Bloomberg. In contrast, U.S. junk bond issuance has already surged to the highest level in six months, the data show.