Reasons To Fear and Love Junk Bonds

Two weeks ago French cable company, Numericable Group (NUM.PA), raised $11 billion dollars in the high yield or “junk bond” market.  Investor hunger for this offering was so strong that the company raised $2.8 billion more than it originally sought.  This is the largest junk bond offering on record and it came in a series of tranches with yields varying between 4.875% for five year bonds and 6.50% for ten year bonds.  These bonds, issued to pay for an acquisition are likely to be rated th...