Sonny
04-02-2010, 12:59 AM
Junk Bond Sales Surge in 1st Quarter
April 1, 2010, 3:36 pm
– Cyrus Sanati
Companies issued $75.5 billion in high-yield debt for the first three months of 2010, according to data from Thomson Reuters, setting a new quarterly record. It is a further sign that investors remain hungry for the bigger returns of riskier debt.
The jump in quarterly volume was an astounding 579 percent over the same time last year, remarkable even if the first quarter of 2009 wasn’t the first following the financial crisis. March alone saw issuance volume of nearly $40 billion.
Low interest rates and strong investor demand have helped open up the financial markets for high-yield issuances. Spreads on junk bonds have steadily dropped from an average of 14 percent above 10-year Treasurys in November 2009 to just 5.5 percent above Treasurys in March.
snip>--
full article at,
http://dealbook.blogs.nytimes.com/2010/04/01/junk-bond-sales-surge-in-1st-quarter/
!
April 1, 2010, 3:36 pm
– Cyrus Sanati
Companies issued $75.5 billion in high-yield debt for the first three months of 2010, according to data from Thomson Reuters, setting a new quarterly record. It is a further sign that investors remain hungry for the bigger returns of riskier debt.
The jump in quarterly volume was an astounding 579 percent over the same time last year, remarkable even if the first quarter of 2009 wasn’t the first following the financial crisis. March alone saw issuance volume of nearly $40 billion.
Low interest rates and strong investor demand have helped open up the financial markets for high-yield issuances. Spreads on junk bonds have steadily dropped from an average of 14 percent above 10-year Treasurys in November 2009 to just 5.5 percent above Treasurys in March.
snip>--
full article at,
http://dealbook.blogs.nytimes.com/2010/04/01/junk-bond-sales-surge-in-1st-quarter/
!