A Quick Junkyard Tour
For the summary of last week's bond issues, I decided to focus on some of the high yield, aka junk, borrowers.
It's interesting to see how far yields have been bid down on less-than-stellar rated paper. Several of the borrowers sold ten-year paper with yields near 4%. If they're smart with the money, this is great for the companies. They can improve cash flow by taking out existing, higher rate debt, the bar for cap ex investments is low, etc. However, I don't think this stuff is all that great a deal for the investors buying it.
As always, thoughts, comments or questions are welcome here or at the article.
Off to watch the hockey playoffs. LETS GO CAPS!
Fool on! Russ