Takata's 10% Bond Yield Deemed Insufficient After Honda Rebuke
- Default risk on air-bag maker has jumped to speculative grade
- `We may be into 2017' before many cases resolved: professor
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Takata Corp.’s bond yield tripled this month after a rebuke by its biggest customer Honda Motor Co. overshadowed a settlement with U.S. regulators over faulty air bags.
The yield on Takata’s December 2017 bond climbed to a record 10.4 percent last week from 3.05 percent at the end of October. Honda said Nov. 3 it was “deeply troubled” by evidence suggesting the auto parts maker may have misrepresented test data.