One month ago we reported that the junk bond market had effectively frozen as a result of surging spreads, or as the FT put it “ground to a halt”, because for the first time since November 2008, not a single high-yield bond had priced in the market in the past 30 days. Today, the Wall Street Journal picked up on this, reporting that “December was the first month since 2008 without a junk-bond sale.” In fact, the market had gone for a whopping 40 days without a sale, the longest stretch in data going back to 1995. The reason for the bond issuance drought was a familiar one: “volatility in financial markets, uncertainty about the economy and the recent drop
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