Mining malaise fuels world's worst junk bond losses

Sydney

AUSTRALIA is delivering the worst junk bond losses this year among major nations as a commodities rout undermines resources companies and mining service providers.

With iron ore and coal plunging to five-year lows, speculative-grade notes from Australian companies delivered a 4.4 per cent loss since Dec 31, a Bank of America Merrill Lynch index of dollar-denominated debt shows. That compares with a 4 per cent gain for the gauge as a whole. Debt in Fortescue Metals Group Ltd, Australia's third-biggest iron ore miner, slumped 6.3 per cent.