To the investors who plowed all their money into the lowest-rated bonds at the end of last year: Congratulations. You won the jackpot, with the best returns on such debt since 2009.
To the company with a troubled balance sheet that's hoping to borrow money this year: Good luck. Investors just aren't throwing their money into any junk-rated company anymore.
An example of this can be found in U.S. Xpress Enterprises, which opted to scrap a $320 million debt offering late Wednesday, according to Bloomberg News's Sridhar Natarajan and Michelle F. Davis. The problem? Investors weren't ready to pile into a trucking company at a difficult time for the industry unless it paid them big time. The trucker balked.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
