Sentences with phrase «junk bond debt»

The energy sector alone has $ 248 billion in junk bond debt — some of the riskiest debt there is!

They start defaulting on their junk bond debt.

Not exact matches

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

The sell off in the market for high yield debt, or junk bonds, is now hitting a type of structured bond that is similar to the the type that blew up in the financial crisis.

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

The Medicis deal, financed through debt, has bumped the company's debt level to more than $ 7 billion, or a 4.2 debt ratio, forcing Moody's to put Valeant's debt — already in junk bond territory — under review for a downgrade.

The $ 1.2 trillion market for U.S. junk bonds yields about 6.6 percent, double what's offered by higher - rated company debt, according to Bank of America Merrill Lynch index data.

Most of the capital provided to these companies comes from high - yield («junk») corporate bond sales, preferred share offerings, and debt.

The fund can purchase securities of any credit quality, including those in default, but it will primarily invest in investment - grade debt, with no more than 20 % of the portfolio invested in junk bonds.

It's easier for them simply to swap their junk mortgages to the Treasury or Federal Reserve for full - value U.S. Treasury bonds, and make the government take the loss — and presumably levy taxes to cover the interest charges on the augmented debt!

So while these «fallen angel» bonds have the potential to be intrinsically higher quality than debt originally issued at the junk or high - yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.

One red flag for lenders is that the volume of energy debt rated CCC or below — the weakest ratings among junk bond issuers — has more than doubled to $ 62 billion from a year ago, Fitch said in a June 12 report.

The Obama Administration's Wall Street managers have kept the debt overhead in place — toxic mortgage debt, junk bonds, and most seriously, the novel web of collateralized debt obligations (CDO), credit default swaps (almost monopolized by A.I.G.) and kindred financial derivatives of a basically mathematical character that have developed in the 1990s and early 2000s.

Moody's Investors Service, which downgraded Tesla's credit rating further into junk in March, still expects Tesla will need to raise about $ 2 billion selling equity, convertible bonds or debt, to offset the cash it burns this year and securities maturing through early 2019.

Junk bonds are typically subordinated, unsecured debt obligations of the issuer.

The risk in higher yielding junk bonds first and foremost is derived from fact that any company paying north of 5 % to issue debt has a high probability of never paying back the investors who by the debt.

``... The result of the junk bond process was to load American industry down with so much debt that there's no money to pay pensions...»

The proximate cause of death for virtually every defaulting junk bond is a liquidity crisis occasioned by either an inability to generate enough cash to service debt, or an inability to refinance maturing debt.

With $ 23 billion in debt and its bonds rated as junk, ArcelorMittal started to scale down.

Junk bonds, bank loans, and other riskier types of debt have often been analogized to the canary in the coal mine when gauging the health of global markets.

The eventual downgrade to junk, aka non-investment grade, will make IL debt ineligible for investment for some of their major institutional investors (one of which has already called for a boycott of Illinois debt) which are restricted by mandate to purchase only investment grade muni bonds.

The investor should note that vehicles that invest in lower - rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

On the subject of junk debt, in the first two quarters of 2014, European high yield bond issuance outstripped U.S. issuance for the first time in history, with 77 % of the total represented by Greece, Ireland, Italy, Portugal, and Spain.

Its fund holds emerging - market equity and debt, junk bonds, and commodities.»

-- Junk - bond investors are passing up traditional protections in their race to buy new debt, and some participants worry the diminished safeguards are a sign of an overheated market.

The idea of debt amnesties was to prevent debt from tearing society apart — to prevent the kind of crisis that the United States has been in since 2008, when President Obama didn't cancel the junk - bond debts, or the debts that tore the Greek economy apart — when the IMF and Europe imposed them on Greece instead of letting it default on debts owed to French and German bondholders.

Junk bonds were debt of troubled companies and Michael Milken is credited for creating this trillion - dollar securities market.

They are long major stock markets, junk bonds and emerging - market debt, and they are short the dollar against the euro and against commodity - based currencies.

Oyster Bay is reeling from scandals involving an influential restaurateur, a former town official and financial problems that triggered a ratings agency to recently downgrade the town's debt to «junk bond» status.

Talk of a move to re-establish state fiscal oversight of the city's schools has circulated since the summer and comes as bond ratings agencies have dropped CPS» debt deeper into junk status in advance of district plans to add more than $ 850 million to its overall debt load.

Non-investment-grade debt securities (high - yield / junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher rated securities.

And the Fidelity Leveraged Company Stock (FLVCX), which invests in the stock of those companies which resort to issuing junk bonds or which are, otherwise, highly - leveraged (a.k.a., deeply in debt).

The drugmaker's bonds were cut to junk from investment grade by Moody's after its US$ 41 - billion buyout of Allergan Plc's generics business in 2016 left the company with a debt load that outweighed its value in the stock market.

The Sub-Advisor seeks to achieve the fund's investment objective by selecting a focused portfolio of high - yield debt securities (commonly referred to as junk bonds).

Teva Pharmaceutical's bonds were cut to junk from investment grade by Moody's after its US$ 41 - billion buyout of Allergan's generics business in 2016 left the company with a debt load that outweighed its value in the stock market.

Oh my, though junk bonds paced equities, distressed debt did far better.

High - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

NEW YORK, Aug 14 (Reuters)- The global junk bond default rate rose to 1.79 percent in July from 1.44 percent in June as U.S. financial and real estate firms struggled to keep up with debt payments, Standard & Poor's said on Thursday.

So if a company is drowning in debt and has little capacity to pay it back, its bonds will get a junk rating and they won't make into indexes that hold only investment - grade issues.

The U.S. territory also is grappling with $ 70 billion in debt, ratings firms have downgraded its bonds to one notch above junk and investors fear it could default on its obligations.

Returns from investments in «junk» bonds, government guaranteed mortgage securities and even some battered euro - zone debt are plunging in the wake of global central bank policies intended to suppress borrowing costs.

Is anyone else considering no longer adding new money to the bond portion of their portfolio, or diversifying into much riskier bonds (junk or emerging market debt)?

Private Versus Public Debt: Evidence From Firms That Replace Bank Loans With Junk Bonds: Stuart C. Gilson, Jerold B. Warner

These ETFs invest in junk bonds, senior loans, as well as international below investment grade debt.

Non-investment-grade debt securities (high - yield / junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher - rated securities.

Assets that are hybrid between equity and debt tend not to offer much diversification to a balanced core portfolio, so junk bonds, convertible bonds, and preferred stock do not offer much of a diversification advantage.

The fund may invest up to 100 % of its managed assets in below - investment grade debt securities (commonly referred to as «high - yield» or «junk» bonds).

Indeed, the rest of the world's central banks are purchasing assets (e.g., government debt, investment grade corporate bonds, higher - yielding junk corporates, stocks, etc.) with QE «funny money» in the hopes that it will boost economic growth.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.