Stoneridge Inc. , the maker of electrical parts and systems for medium- and heavy-duty trucks, is marketing notes as relative yields on speculative-grade corporate debt signals a “nascent recovery” in the economy.
Companies are planning at least $3.5 billion of debt as weakening investor confidence in the economic recovery threatens the pace of issuance.
Pioneer Drilling Co., the San Antonio-based natural-gas driller, plans to sell high-yield, high-risk bonds after the U.S. corporate default rate declined last month.
Companies are planning to sell at least $4.25 billion of debt as offerings of high-yield, high- risk bonds halted for a seventh trading day amid signs of a slowing economy.
PolyOne Corp. , the maker of Geon vinyl compounds, plans to sell $320 million of notes as junk- rated companies take advantage of falling borrowing costs to refinance debt and avoid default.
Mexichem SAB, the largest maker of plastic pipes in Latin America, plans to sell debt today after yields on speculative-grade bonds rose the most in almost a month relative to benchmark rates.
The trailing 12-month U.S. speculative-grade corporate default rate fell to 1.7 percent last month, the lowest since March 2008, according to Standard & Poor’s.
"A rising distress ratio reflects an increased need for capital and is typically a precursor to more defaults when accompanied by a severe and sustained market disruption."
- Diane Vazza on Aug 22, 2014
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