Junk-rated companies are selling loads of debt again. They're issuing dollar-denominated bonds at the fastest pace this month since October 2012. October Surge This month's U.S. junk-bond sales are poised to be the fastest for an October since 2012 Source: Bloomberg Note: Blue bar is monthly volume 2012-2016, MTD 2017. Yellow bar is conservative projection. This builds on the frenzy in the U.S. leveraged-loan market this year, which is on pace to be the most active ever. The most obvious interpretation of this borrowing binge is that it fits into the popular narrative of incredibly frothy markets. In that scenario, speculative-grade companies are throwing caution to the wind and packing on leverage at the expense of lenders. Supporting that argument is the reliance of more companies on debt markets to finance leveraged buyouts, locking in historically low rates. But that narrative is far too simplistic and misses an important point. Junk-rated companies have ..
Junk borrowing binge benefits Wall Street Above All