High yield, or junk, bond issuance is at record highs this year as low yields on government-issued bonds have made it easier for companies with questionable credit ratings to get financing on the cheap. While this is good for the companies in question, particularly those who are trying to refinance even higher priced debt, it is also a bit alarming as the very reason these companies need to issue higher yield debt is their less than stellar financial situations. Particularly as the economy is in a less than stellar situation itself, this could lead to trouble in the future, and at least provides one more bit of uncertainty in an already murky economic picture.
Well, at least one thing is for sure; regulators won't be able to blame Mike Milken this time...
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