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Global Junk-Bond Sales Drop Most Ever With No Signs of Recovery

  • Central bank rate hikes hindering prospects for transactions
  • Banks also reluctant to take on risk by underwriting deals
Updated on

Junk bond sales are falling at an unprecedented rate globally as interest rates rise, a double blow to riskier companies in need of financing in the next few years.

Issuance for high yield corporates plummeted 73% through Oct. 24 compared with the same period last year, according to LEAG data compiled by Bloomberg.