Losses on soured debt linked to a California shopping center that was foreclosed on more than three years ago surpassed 100 percent, spurring ratings cuts on one of the last bond deals before the property-market collapse.
Investment-grade corporate bonds are showing signs of life following the biggest losses since 2008 as concern wanes that a Federal Reserve pullback from record stimulus will cause a surge in interest rates.
Frontier Communications Corp., the least indebted broadband and telecommunications company among peers, is forgoing debt reduction in favor of investing in infrastructure and maintaining its dividend to shareholders.
Bond investors trying to divine when the Federal Reserve will reduce its unprecedented monetary stimulus are increasingly looking to the riskiest parts of the debt market, which are booming like before the financial crisis.
A gauge of U.S. company credit risk recorded the biggest weekly rise in almost two months amid concern the Federal Reserve may start curbing stimulus later this year. The cost to protect against a default by Caesars Entertainment Corp. dropped.
Pacific Investment Management Co., BlackRock Inc. and Bank of New York Mellon Corp. are seeking a court order blocking Richmond, California, and Mortgage Resolution Partners LLC from seizing mortgages through eminent domain, saying the initiative would hurt savers and retirees.