Deals
Junk Bond Issuers Get in Now, While the Going's Still Good
- January has been busiest for high-yield sales since September
- Outlook for rest of 2019 is less clear as volatility weighs
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Junk bond issuers sprang to life this week, getting better terms from investors in the biggest spree since August. The sales bump is welcome relief to cash-rich, yield-hungry credit investors who’ve had nothing to buy since November -- but few expect it to last.
After being whipsawed by heightened volatility in the fourth quarter -- which completely froze out junk bond issuers last month -- market participants predict that sales will come in spurts for the rest of 2019. There’s little visible M&A or refinancing opportunity to drive volume, and even though credit markets have erased December losses, there’s little confidence that the bullish tone will last.