Risky Borrowers Flood Market to Tap Investor Hunger for Yield
The resilience underscores the persistent hunt for yield amid expectations that interest rates will remain flat or fall modestly later this year.
Photographer: Michael Nagle/BloombergWhile the broader markets have flinched at every political tremor, the world of risky debt is acting like almost nothing’s wrong.
The market for triple C bonds — debt that’s deep into junk territory — is thriving. Companies are seeking new leveraged loans at a clip. Some deals have been so popular that banks are reducing borrowing costs, while others have hastened financing deadlines as they capitalize on robust demand.