High-yield debt Archives - CFO

Junk Bond Defaults Seen Rising Again in 2016

Junk Bond Defaults Seen Rising Again in 2016

The credit ratings agency forecast that the junk default rate will be 4% this year, up from 3.5% in 2015.

By Matthew Heller | March 2, 2016

Corporate Ratings Outlook Worst Since Crisis

Corporate Ratings Outlook Worst Since Crisis

There were three times as many debt-issuing companies on negative credit watch as on positive at the end of 2015, S&P says.

By Katie Kuehner-Hebert | January 13, 2016

Junk Bond Protections Find Deeper Bottom

Investment Banking

Junk Bond Protections Find Deeper Bottom

Investors "continue to trade away protections and take on more risk in search of higher yields," says a Moody's analyst.

By Matthew Heller | September 10, 2015

High-Yield Firms’ Cash Falls 9% to $281B

High-Yield Firms’ Cash Falls 9% to $281B

Speculative-grade companies spent an amount equal to four times their discretionary cash flow on dividends and buybacks in 2014, says Moody's.

By Matthew Heller | June 16, 2015

Junk Bond Protections Fall to Record Low

Junk Bond Protections Fall to Record Low

Investors' hunger for yield is leading to still-weaker covenant protections on noninvestment-grade corporate bonds.

By Matthew Heller | March 11, 2015

Dark Clouds Looming for Small Shale-Oil Producers

Dark Clouds Looming for Small Shale-Oil Producers

Exploration and production companies have amassed total debt of $285 billion and their leverage metrics have increased notably, says an ABI Journal paper.

By Matthew Heller | March 9, 2015

2015 Outlook: Equities “Slow to a Jog”

2015 Outlook: Equities “Slow to a Jog”

BofA Merrill Lynch's research team says the bull market will continue, but higher volatility, wider credit spreads and lower liquidity are on the horizon.

By Vincent Ryan | December 11, 2014

Junk Bond Exodus Resumes After August Rally

Junk Bond Exodus Resumes After August Rally

Speculative-grade issuers have to give a little more to get investors to buy new bond offerings.

By Matthew Heller | September 12, 2014

Junk-Rated Loans Could Incur Big Losses: OCC Comptroller

Junk-Rated Loans Could Incur Big Losses: OCC Comptroller

Should the economy come under stress, a large number of leveraged loans could default and cause record losses, according to one banking regulator.

By Iris Dorbian | July 11, 2014

LBOs Face Their Day of Reckoning

LBOs Face Their Day of Reckoning

With the Energy Future Holdings bankruptcy, leveraged buyouts now represent 31 percent of all bond and institutional loan defaults since 2007.

By Vincent Ryan | June 4, 2014

A New World for Bonds

Global Business

A New World for Bonds

Time to sweep away an artificial distinction in the world of corporate debt issues.

By Economist Staff | February 7, 2014

An Appetite for Junk

An Appetite for Junk

Companies have taken advantage of investors’ growing willingness to buy speculative bonds.

By Economist Staff | October 21, 2013

Growth Strategies

Take Your PIK

More companies are opting to issue now, pay later.

By Ian Springsteel | December 1, 1997