TOO HOT TO HANDLE

摘要

The hunt for yield is driving a frenzy in demand for junk bonds - raising concerns among US regulators that investors are taking on too much risk. But the market may be cooling of its own accord. The leverage finance market in the US is far too hot. The issuance of leveraged loans, generally referred to as junk rated, jumped 72% last year to US$1.14trn, according to Thomson Reuters LPC. Not much seems to slow it down. Although primary high-yield issuance so far this year is US$108.8bn, slightly down on the US$125.6bn issued in the same period last year, junk issuance is up from US$120bn to US$135.9bn.