Junk Bonds Rage as Clear Channel Sells Biggest CCC in Months
- High-yield index reaching record high on dovish Fed outlook
- Lowest-rated debt has led the charge with 6% returns this year
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Clear Channel Outdoor Holdings Inc. sold $2.235 billion of bonds in the largest triple-C rated deal since September, the latest sign that the U.S. junk-bond market has been roused from its sleep.
The bond sale, rated Caa1 by Moody’s Investors Service and an equivalent CCC+ by S&P Global Ratings, is the largest in the lowest junk ratings tier since Intelsat SA borrowed $2.25 billion through a subsidiary in September. High-yield debt has already proven to be one of the best-performing asset classes in fixed income this year, led by CCC rated bonds that have so far returned just over 6 percent, Bloomberg Barclays index data show.