If anyone needed evidence that parts of the high-yield bond market no longer provide investors with protection against rising interest rates, then they received it last week, when the highest quality, longest-dated new issues suffered losses of as much as two points in dollar price.
Dish DBS Corporation angered existing bondholders last week when it announced plans to raise US$2.5bn in the high-yield market as part of the funding for its proposed acquisition of Sprint Nextel.
There was no let-up in the high-yield market on Thursday even after the deluge of deals yesterday, when 10 issuers rushed to market for a total of US$7.5bn. A total of US$10.451bn has priced so far this week from 18 US-dollar deals.
- US HY BONDS WRAP: Dish DBS leads pack with US$2.5bn deal
- US junk market ignites
- US HY BONDS WRAP: Eight deals hit market to raise US$4.575bn
- US HY BONDS WRAP: New issuance slows; Only one deal set to price
- US HY BONDS WRAP: Three new issuers enter market as yield hits another low
- US HY BONDS WRAP: Strong demand sends yield-to-worst to new low
- US HY BONDS: Regency Energy sails through with drive-by