M&A Bankers Saying No to More Junk

Banks retreat from the lucrative but risky business of backing debt-heavy buyouts. Source: Wall Street Journal Banks are increasingly turning down companies seeking financing to pay for debt-laden takeovers after the recent market rout left them saddled with debt from earlier deals. Credit Suisse Group, Jefferies Group and Wells Fargo are among the firms turning down…

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European Bond Market Rally Continues

The European Central Bank surprised investors last week with announcement that it will start buying corporate bonds. It certainly is an unprecedented central-bank stimulus measure what leaves more questions than answers at this point in time. Source: Wall Street Journal The European Central Bank’s announcement that it will start buying corporate bonds continued to boost credit…

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Junk-Bond Rebound Signals Easing Fear

Strong economic signals from US high yield market. Source: Wall Street Journal The riskiest part of the U.S. corporate-bond market is staging a comeback, marking an upswing in investor confidence following a turbulent start to the year. Returns on junk bonds, debt issued by heavily indebted companies that carry low credit ratings, turned positive for 2016…

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