As much as fund managers in the high-yield space are quietly bemoaning the pricing of deals, they show no sign of letting up on the buying.
Coeur d'Alene Mining got a warm welcome Thursday from high-yield markets that it tried unsuccessfully to tap last year, another sign of just how hungry bond investors are for paper.
Coeur d'Alene set out to raise $200-million (U.S.) in the transaction, at a coupon of 8 per cent, in a deal led by Barclays. The Toronto-listed silver and gold producer ended up selling $300-million of bonds at a coupon of 7 7/8 per cent.
That's quite a contrast to last summer, when Coeur d'Alene had to pull a bond sale, blaming weak markets.
(Boyd Erman is a Globe and Mail Capital Markets Reporter & Streetwise Columnist.)