Junk Market Worst Since 1985, Down $35 Billion

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JP Morgan estimates that junk bonds have lost almost 4% of their value since the beginning of the year, or $35 billion. The largest losses are at OppenheimerFunds, Fidelity, and John Hancock.

The debt is likely to “struggle” for months as the economy enters a recession, according to JPMorgan Securities, writes Bloomberg.

Raising money or refinancing debt in the high-yield market is also likely to be close to impossible, cutting off an important supply of capital to a large number of companies.

Douglas A. McIntyre