Unfortunately, Schulte ignores the guts of the business--the investments: "We won't spend much time analyzing the Milken-Drexel junk bond
saga," he say, since it's been covered by others.
It started with a corporate Citation Jet, a jaguar and a junk bond
6 percent of the life insurance industry's assets are invested in junk," so a total collapse of the junk bond
market would have only a limited impact on the insurance business.
Actually, the business press and the business sections of daily papers demonstrated a pretty good grasp of the forces that gave rise to the junk bond
market - specifically, the country's shift from an industrial society that's short of capital into a service economy where capital is more plentiful.
Investors have been seeking yield in the current low interest rate environment, and junk bond
funds have offered an alternative, but average investors do not expect to be cut off from trading in an open-end investment company registered under the '40 Act," Galvin said in a statement.
The rating agency expects EMEA junk bond
issuance to continue "at a similar pace" in 2015 but it also warns that "increasing headwinds" are leading to a more volatile environment.
Summary: Moody's has downgraded three nationalised Spanish banking groups, sending their debt deeper into junk bond
John Garamendi's testimony came in the trial of a civil case filed by his office against a French company that eventually took over Executive Life and part of its large junk bond
portfolio from the original buyer, the large French bank Credit Lyonnais.
And although they are paying higher risk premiums, non-investment-grade companies still are able to raise funds: Junk bond
offerings have accounted for about 25 percent of the gross issuance this year.
In turn, Milken and his brokerage firm, Drexel Burnham Lambert, were looking for funds to create their dreamed-of junk bond
funds attracted huge amounts of investor capital in the 1980s.
It said the holdouts were mostly investors who had purchased bonds at sharp discounts after the junk bond
market had crashed.