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Junk bonds sold during periods of heavy issuance perform worse in the short term than those sold...

  • Wednesday, August 29, 2012, 1:13 PM ET
    Junk bonds sold during periods of heavy issuance perform worse in the short term than those sold during slower times, according to very cool Barclays research from the last 2 years. High-yield paper sold in weeks with more than $7B of supply has lost money over the following 14 days.
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  • High issuance means low rates on the issues. Corporations aren't stupid they take advantage of what the market is giving them.

    Low rates on junk mean higher risk. No need to over-complicate it.
    29 Aug 2012, 01:25 PM Reply Like
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