Australia's expanding high-yield and unrated bond market received a reality check when mackay sugar effectively defaulted on its A$50m (US$38.5m) 5.25% April 5 2018 note, having sought and secured a 12-month extension from bondholders. The distressed debt exchange, which represents an event of default according to ratings agencies' definitions, underlines the difficulties that individual investors face in assessing the credit risks of unlisted, unrated credits, said Phil Bayley, principal at ADCM Services, an independent DCM consultancy.
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