Deals
Credit Investors Start to Say ‘Enough.’ At Least Sometimes.
- In four recent debt deals, borrowers had to pay up or pull out
- Too soon to say market is turning, as exuberance persists
Buildings stand on Wall Street near the New York Stock Exchange (NYSE) in New York on Feb. 22, 2016.
Photographer: John Taggart/BloombergThis article is for subscribers only.
Credit market investors who’ve been piling on the risk in search of higher returns are showing they’re not going to roll over completely.
In at least four deals over the past week, money managers said, “enough,” forcing companies to pay more to borrow, agree to tighter terms, or postpone debt sales entirely. Computer security firm McAfee slashed a loan deal and paid higher interest when it sought to borrow more than $4 billion this week. Syngenta AG, a Swiss agricultural supplies company, postponed one of biggest debt offerings to hit the Asian bond market this year.