The banks won't be far behind.
Will banks securitize their deals, or put them on the balance sheet?
The need the fees, but they also need the yield.
As the money numbers turn up, watch for the bond market to sell off.
* * * * * J B K * * * * *
San Francisco
U.S. junk bonds are on pace for their best monthly performance in half a year as a surge in debt sales fans confidence that riskier companies will avoid default.
With March-to-date investment returns of 1.93 percent, junk bonds are poised for their best month since September, when they returned 5.98 percent for the full month, according to Bank of America Merrill Lynch indexes.
Moody's Investors Service has forecast that the U.S. junk bond default rate will fall to 3.3 percent by year end from a peak of 14.5 percent last November as a healing of the credit markets allows companies once frozen out of the bond markets to refinance debt.
http://www.reuters.com/article/idUSTRE62B3G420100312?type=GCA-Economy2010
