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Junk bonds losing favour amid glut

Issuance of US high-yield, high-risk notes in 2015 is 20% ahead of last year's pace

Even with the change in sentiment, terms are still attractive to borrowers as the Federal Reserve (above) holds interest rates near zero. Moody's Investors Service said in a report on Tuesday that investor protections in new US junk bonds fell to the weakest level in at least four years.

New York

AFTER swallowing US$67.8 billion of junk bonds this year, the market is taking a breather.

Investors pulled abour US$2 billion from mutual funds that invest in the riskier debt, snapping six weeks of inflows, according to data provider Lipper. The exodus comes as