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Junk bonds slump as Morgan Stanley sees bigger unwind ahead

Cost of protecting speculative-grade bonds against default in credit-default swap market climbs to highest level since July 6

Tesla Inc is expected to pay lower-than- average yields on US$1.5 billion of bonds that it is selling now.

New York

IT COULD be the beginning of the end for an 18-month rally in junk bonds. A high-yield bond fund run by BlackRock Inc slumped on Thursday to its lowest level since March, a day after Morgan Stanley warned that a correction may already be underway....

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