Thursday, July 26, 2007

Corporate Bond Premiums Soar, Sales Canceled, As Investors Shun Risky Debt

(Bloomberg) -- Japanese corporate bond risk rose to
the highest in more than two years and debt sales faltered
globally as investors shunned all but the safest of debt.

Tyco Electronics Ltd. canceled a bond offering. DAE
Aviation Holdings Inc. scrapped plans for a loan. Credit-default
swaps on Goldman Sachs Group Inc. and Bear Stearns Cos. rose to
records on concerns investment banks will be stuck with high-
yield, high-risk debt that they are unable to sell. The rout
spread to indexes gauging the risk of owning everything from
bank loans to emerging market debt.


Read more at Bloomberg Bonds News

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