A nother cash-burning company - this time Uber - has pulled off a junk bond sale. But it's not necessarily a sign that the high-yield market is bonkers. Yes, Uber is a very secretive firm and its approach to the debt sale was unusual. Getting any kind of details on the bond was tough for investors (as well as journalists). The format - a so-called 4(a)(2) - meant there was no chunky bond document to pore over, or dodgy covenants widely visible that critics could slate. There was no underwriting either, so if bondholders want to sue down the road, they might find it tough to do so.
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