Bonds of Firm That Sells $500 Sneakers Sum Up Junk’s Dilemma
- Investors attracted by returns buy into retailer Golden Goose
- Bondholder protections at their weakest ever: Keren Finance
Photographer: Jeremy Moeller/Getty Images
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It’s a deal that has come to exemplify the fevered state of the high-yield bond market.
Italian luxury fashion retailer Golden Goose -- famed for its distressed-look shoes -- drew enough interest to sell a 480 million-euro ($588 million) six-year junk bond this month. Unlike any other deal in Europe this year, this one banks on the company’s ability to sell sneakers that retail at around 400 euros, its flagship product.