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Yield-hungry investors let guard down

Corporate borrowers get away with issuing deals with less protection in face of the cash flood in Europe.

The ECB's purchase of about 90 billion euros of bonds and asset-backed securities since October is soaking up debt in Europe, driving down rates and encouraging investors to buy riskier securities.

MARIO Draghi's trillion-euro stimulus plan is making investors so desperate for yield that they're giving up protections in Europe's market for risky corporate loans.

The unprecedented flood of cash from the European Central Bank (ECB) is allowing companies to borrow without many of the...

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