Swelling Distressed Bond Market Crashes U.S. Company Debt Party
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The Federal Reserve may be putting off raising interest rates from near zero, but the days of cheap money for everyone in credit markets have already come and gone.
The amount of outstanding distressed bonds -- those that investors consider most likely to default -- has more than doubled in the past year to $121 billion, according to Bank of America Merrill Lynch index data. Prices on the debt have tumbled 2.6 percent in 2015, the biggest decline for the period since the 2008 credit crisis.