US bankruptcies ‘to surge’ amid junk bond deluge

.....If a company’s debt is rated at CC or CCC, there is a 30 per cent likelihood that it will fail within a year,...........The number of companies in the junk bond danger zone is likely to continue to grow this year because investors are pouring record sums into the junk bond market while the conditions are favourable. Today a company can issue junk bonds at a cost of 303-basis points above the cost of 10-year US Treasury bonds, which is considered cheap.