FYI: The run-up in junk bonds is showing signs of returning to earth.
After a spate of bad news triggered sell-offs of a few big speculative-grade borrowers, the pain has spread and even led NRG Energy Inc. to pull a $870 million bond offering on Thursday. Exchange-traded funds that buy high-yield debt have plunged the most since August, with $563 million of retail outflows since the start of this week alone. Three of the biggest junk-rated borrowers, IHeartMedia Inc., CenturyLink Inc. and Community Health Systems Inc., posted disappointing earnings that sent their bonds plunging.
Regards,
Ted
https://www.bloomberg.com/news/articles/2017-11-09/junk-bond-rally-unravels-one-bad-earnings-report-at-a-time
