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Debt Backed by Less Collateral as Spreads Jump: Credit Markets

Unsecured bonds are grabbing a bigger slice of global debt sales as central banks’ efforts to boost growth spur investors to take on risk and demand less collateral, leaving them with lower protection in a default.

Companies have sold $246.9 billion of unsecured high-yield debt this year, making up 72.6 percent of all speculative-grade issuance, according to data compiled by Bloomberg. That compares with $112.1 billion during the same period in 2009, or 61.5 percent of junk bond offerings.