Wednesday, March 30, 2005


Junk Bonds Take Big Fall In March

Reuters is reporting that junk bonds are struggling through the worst month in years. "Bonds with "CCC" ratings, just above default, have posted a 1.76 percent year-to-date loss."

With bonds needing to roll over, more losses may be coming. "About $94 billion in U.S. junk bonds and bank debt will mature by 2007, according to Moody's Investors Service, about $12 billion of it rated in the "triple-C" range. Even before the recent sell-off in high-yield bonds, Moody's warned that companies could have difficulty refinancing some of that debt."

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