Does the corporate bond market have an inequality problem?
The bifurcation between bonds sold by investment-grade companies with stronger balance sheets and those sold by high-yield corporations with more fragile financials was on full display this week following a change in a proposed debt sale by Western Digital Corp. While the junk-rated maker of hard disks had originally planned to fund its acquisition of SanDisk Corp. through a $5.6 billion bond sale, lackluster demand from investors forced it to scale back the program to $5.23 billion of debt issuance.
