Europe's Pain Pinches U.S. Junk

Forbes reports:

Could Europe's debt problems spread to the U.S. credit markets? In a way, they already have: A turbulent high-yield bond market, caused by investors selling anything with a whiff of risk, led seven companies to cancel planned bond sales in May, according to KDP Investment Advisors. Titan International, Allegiant Travel and Regal Cinemas are the most recent to put their financing plans on hold.

After months of tapping markets for record amounts, May saw U.S. companies raised less cash from high-yield investors than in any month since March 2009. Data-provider Dealogic counted $8.4 billion junk bond sales in May, a steep fall from $38.6 billion in April and $39.6 billion in March.