Blackstone’s Goodman Rooting for Reversal in Frothy Junk Market
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Blackstone Group LP is “rooting for a correction” in the junk bond market as yields descend to record-low levels.
“We would describe the public markets for high-yield bonds as frothy,” Bennett Goodman, the head of Blackstone’s credit business, said at the firm’s fourth investor day in New York. Yields on speculative-grade debt fell to an unprecedented 5.78 percent yesterday, about what it cost the U.S. government to borrow for 10 years as recently as 2000.