The wave of cash raised by SPACs is rolling into the junk debt market, aiding distressed companies and rewarding investors who own their bonds and loans, The Wall Street Journal reports.
Blank-check companies have issued roughly $100 billion of stock this year, a record, to buy private companies and take them public. Some SPACs are targeting companies with below-investment-grade credit ratings, hoping to use their cash piles to pay down debt and grow the businesses.
Not since the dot.com-boom two decades ago has stock-market enthusiasm been hot enough to fuel such activity in debt markets, bond investors and analysts say. Read more.
