The market's recent losses threaten to awaken the dormant bankruptcy beast.
Yields on risky debt are creeping higher, raising borrowing costs and threatening tougher times for companies that need to refinance billions in obligations, thoe fine people at Wall St Journal report.
The gap between rates tied to "junk" bonds issued by risky companies and U.S. Treasurys continued to widen Thursday, to well above seven percentage points, up from more than five at the end of July, according to Bank of America Merrill Lynch's High Yield Master II Index. The spread is even higher for the riskiest debt.
An increasingly harsh economic outlook, flagged by the Federal Reserve ..
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http://online.wsj.com/article/SB10001424053111904823804576502580917767952.html
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