5/27/2010

Corporate borrowers with marginal credit faced renewed danger that they might be unable to refinance maturing debt as yields of high-yield bonds surged this week. The proportion of corporate bonds classified as distressed increased from 9.2% last month to 17% this month, according to the Bank of America Merrill Lynch Global High-Yield Index. Pricing for credit default swaps indicated a falling risk of corporate default in Europe.

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