(Reuters) - NEW YORK, July 24 - Soaring defaults in the
subprime mortgage market are spreading into the U.S. credit
markets, producing a "sudden liquidity crisis" in the
high-yield bond sector, according to widely followed bond
manager Bill Gross.
A lack of confidence has shut down the markets for lending
and backed up new junk-bond offerings -- a major source of
funding for leveraged buyouts and may become a factor
ultimately impacting the U.S. economy, said Gross, manager of
the world's largest bond fund at Pacific Investment Management
Co., or PIMCO. He made the comment in his August investment
outlook letter.
Read more at Reuters.com Bonds News
subprime mortgage market are spreading into the U.S. credit
markets, producing a "sudden liquidity crisis" in the
high-yield bond sector, according to widely followed bond
manager Bill Gross.
A lack of confidence has shut down the markets for lending
and backed up new junk-bond offerings -- a major source of
funding for leveraged buyouts and may become a factor
ultimately impacting the U.S. economy, said Gross, manager of
the world's largest bond fund at Pacific Investment Management
Co., or PIMCO. He made the comment in his August investment
outlook letter.
Read more at Reuters.com Bonds News
No comments:
Post a Comment