Junk-Bond Issuance Surges to $26 Billion in the Last Stages of Boom
- Sales limited to better quality borrowers or those paying up
- `Line has been drawn' about who can tap a bifurcated market
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The U.S. junk bond market reopened for business in November -- but only for a select group of companies.
Speculative-grade borrowers raised about $26 billion of debt this month, more than double what was sold in October. That made it the busiest month for the riskier borrowings since May. Issuance was dominated by companies whose credit profile is on the rise and those who were willing to pay up.