Deals
Creditors Bawl: How Investors Ignored Risk of Junk-Bond Rout
- Debt, payable in more debt, to fund dividends was a warning
- Rush to get money out of high-yield funds taxes liquidity
Junk Bonds Yield Fears of Market Excesses
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You had to see this one coming.
Warnings of a high-yield bust were plentiful: The shale driller that missed its first payment. The clothing manufacturer and the software maker among the many companies that issued debt, payable in more debt, earmarked to reward managers who’d already loaded them up with debt.