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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” [...]
GoldenTree Asset Management raised a collateralized loan obligation of about $590 million that allows for as much as a 40 percent investment in second-lien loans and high-yield bonds. Bank of America arranged the deal, which is being used to replace a financing for a credit opportunity fund overseen by GoldenTree, which manages $15.9 billion in assets, according to two people with knowledge [...]
Another bubble may be forming in the U.S. housing market, this time in the bonds of homebuilders. Not since July 2007, before the subprime mortgage market collapsed and credit markets froze, have investors accepted relative yields as low as they are now for debt of the nation’s biggest homebuilders. Spreads at 4.82 percentage points on debt of borrowers from D.R. [...]
Lester R. Brafman, a managing director in the high-yield debt sales and trading department at Goldman Sachs, left this week after 11 years at the firm, according to five people familiar with the matter. Brafman, 50, joined Goldman Sachs in 2001 after six years at Credit Suisse First Boston, according to records maintained by the [...]
Best Buy founder Richard Schulze is considering a takeover structure for the electronics retailer that would leave it with more debt than a typical buyout, said people with knowledge of the matter. Credit Suisse, Schulze’s financial adviser, has told Schulze that he can raise $6.5 billion to $7 billion in debt for a deal, and [...]
Sales of junk bonds in the U.S. have already set a record for August, as yields at about record lows combined with a slowdown in earnings growth spark concern the market has peaked. “It has become such a feeding frenzy,” said Bonnie Baha, who helps oversee $40 billion as head of global developed credit at [...]
An $850 million bond sale from Energy Future Holdings is paving the way for the power producer to potentially put its unregulated unit into bankruptcy. Proceeds from the sale, a portion of which was secured by the firm’s equity interest in Oncor Electric Delivery, will be used to repay a loan to Energy Future’s Texas [...]
KKR has almost doubled its direct lending to troubled companies as Europe’s financial crisis forces banks to retreat. KKR’s special situations group, which focuses on European distressed debt, increased its investments – mostly in the form of privately negotiated lending arrangements – to $512.5 million in the first half, from $260 million in the first [...]
Investors are turning to U.S. mutual funds that buy leveraged loans as the debt posted the biggest gains in six months and prices in the secondary market are the highest in a year. Retail investors added $99.3 million to U.S. loan mutual funds in the week ended August 1, the seventh straight week of inflows, [...]
Frontier Communications is convincing bond investors that high-speed Internet sales will help bolster revenue that’s dropped for seven straight quarters. The phone, Internet and television provider’s $7 billion of bonds have returned 2.47 percent, more than any junk-rated peer, since July 31. That’s when Frontier said second-quarter sales fell less than analysts estimated as its [...]
