US Junk-Bond Market Is Increasingly Just for Refinancing Itself
- Net sales of US high-yield debt is near the lowest since 2010
- Private credit, leveraged loans grow even as junk bonds shrink
Nearly 80% of junk-bond sales in the US so far this year were for refinancing bonds or loans, the highest percentage since at least 2010, according to data from Barclays Plc.
Photographer: Chris J. Ratcliffe/BloombergThis article is for subscribers only.
Companies are increasingly using the $1.4 trillion US junk-bond market to refinance existing debt, while new borrowing is happening more in private and leveraged loan markets.
Nearly 80% of junk-bond sales in the US so far this year were for refinancing bonds or loans, the highest percentage since at least 2010, according to data from Barclays Plc. There have been just $59 billion of new high-yield note sales this year through Dec. 4, one of the lowest in more than a decade.