Pay Attention to the Upcoming Bond Bust, Not the So-Called Junk Boom

The Daily Bell
February 19, 2013

How a junk bond bubble is driving a buyout and merger boom … The merger and buyout boom of 2013 is upon us! Some of America’s biggest companies are coupling up faster than frisky teenagers at their first unchaperoned party. On Thursday alone, Warren Buffett‘s Berkshire Hathaway and private equity firm 3G Capital announced a $23 billion purchase of H.J. Heinz Co., the iconic producer of ketchup and other fine foods, and American Airlines and US Airways announced a merger. Earlier in the month, Michael Dell and private equity firm Silver Lake has announced a plan to buy PC maker Dell back from its public shareholders for $24 billion, and Comcast bid $17 billion to buy the remainder of NBC Universal from General Electric it didn’t already own. – Washington Post

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