Junk-Debt Sales Soar Toward Record Year

[mahatmakanejeeves]

MARKETS | CREDIT MARKETS

Junk-Debt Sales Soar Toward Record Year

Issuance of bonds and loans from companies with speculative-grade credit ratings has already hit a one-year high

By Sebastian Pellejero
https://twitter.com/pellejeroseb
[e-mail]
Sept. 19, 2021 5:33 am ET

The $3 trillion market for low-rated companies’ debt is having its best year ever, powered by a rebounding economy and investors’ demand for any extra yield.

U.S. companies including Crocs Inc. and SeaWorld Entertainment Inc. have sold more than $786 billion of junk-rated bonds and loans so far in 2021, according to S&P Global Market Intelligence’s S&P. That tops the previous high for a full year in data going back to 2008.

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[multigraincracker]

1. Banks get bailed out.

All others will lose their shirts.

The higher the return, the greater the risk. They must have lots to lose.

[SWBTATTReg]

2. What is that saying that when junk bonds get oversold/too much demand, that this is a warning signal

to investors? Already have investors paying way too much multiples Price/Earnings Ratio for stocks, and other assets, in their perpetual chase for adequate returns...I'd say be cautious all...we had a pretty good run thus far in the markets thus far...