Investors Prepare For Brisk High Yield Issuance
Investors’ hunger for yield is expected to drive September junk bond issuance and could help make 2012 a record year for high-yield debt sales. This month’s total could match the record $31 billion in new bonds sold in August, which was five times the average issuance for the month since 1999, analysts and investors say.
An “insatiable demand” for paper, as well as zero newbonds since Aug. 20, kept the market from becoming saturated, said Margie Patel, a money manager at Wells Fargo who oversees $1 billion.
With $201 billion in new bonds since the beginning of the year, JPMorgan said the junk market is on pace to beat the record $302 billion set in 2010.