Previously bullish on the high-yield sector, some are jumping ship, alarmed by the sort of...
Previously bullish on the high-yield sector, some are jumping ship, alarmed by the sort of speculative offerings seen around past market tops. The latest is the re-emergence of paid-in-kind bonds, which allow issuers to pay interest in the form of more bonds, rather than cash. In the last week in September, investors pulled money out of junk bond funds for the first time in months, says Lipper.
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