Silver as an investment

The Lemmings March On—-Junk-Bond Buyers Persist in Yield Hunt Amid Global Market Spasms

davidstockmanscontracorner.com / by Claire Boston, Bloomberg Business • 

Credit market jitters have done little to deter yield-hungry investors from buying new junk bonds to get their fix.

Consider PDC Energy Inc., an oil explorer with credit ratings four levels below investment grade. Investors were so enthusiastic about the company’s bond sale on Monday that they put in $1.5 billion of orders for a $400 million offering, according to people with knowledge of the matter.

PDC’s hardly alone. Despite Tuesday’s plunge in crude, Callon Petroleum Co. and Great Western Petroleum are planning to raise a combined $650 million of debt this week, said the people, who asked not to be identified because the deals are private. They’re seeking to take advantage of borrowing costs that are hovering near 15-month lows even after the busiest August for sales since 2012.

READ MORE

The post The Lemmings March On—-Junk-Bond Buyers Persist in Yield Hunt Amid Global Market Spasms appeared first on Silver For The People.