Corporate Debt: Dressed Up, Nowhere to Go

The financing window closed this month with a credit squeeze that started in the subprime mortgage market before spreading into higher grades of debt

How long will the credit window stay closed to corporate debt? More than $90 billion in high-yield corporate bonds are waiting to get syndicated from banks to institutional investors, the by-product of a long boom in leveraged buyouts. That record six-month inventory of loans is about twice the typical backlog, corporate finance experts say. The problem? No buyers.

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