The Market's Unquenchable Thirst for Junk

The Market's Unquenchable Thirst for Junk Play

May 23 (Bloomberg) -- AMF Bowling Worldwide Inc. and Ahern Rentals Inc. are prime examples of the frothy market where junk-bond investors are fearless in the face of risk, as Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle discuss on their video. Rochelle says that more "covenant-lite" junk debts has been sold so far this year than in all of 2012 combined. After a dearth of new filings, three hit the books in the space of 24 hours in the printing, construction, and health care industries. U.S. Bankruptcy Judge Judith K. Fitzgerald is the "Judge of the Week" following her mammoth opinion pinning down the present and future liability encumbering Specialty Products Holding Corp. and Bondex International Inc., subsidiaries of Rust-Oleum maker RPM International Inc. The U.S. Court of Appeals in Philadelphia handed down the "Opinion of the Week" in a complex case at the intersection of bankruptcy and tax law.

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