Possible LBO trend threatens bond investors

02/4/2013 | Wall Street Journal, The

An uptick in leveraged buyouts may be bad for corporate-bond investors. After years of relatively low activity, buyout risk has returned to the market as euro-zone instability and U.S. regulatory risk have fallen to their lowest levels in years. As the potential for buyouts grow, institutional investors are increasingly looking to hedge their risks with credit default swaps or avoiding bonds with buyout risks altogether.

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Wall Street Journal, The

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