High- yield finance companies, too, may have a tough time accessing capital markets, even if the Fed cuts short-term interest rates.
Bear also committed to a $600 million bridge loan, which it planned to replace with the high-yield financing.
United has had to turn to more nontraditional sources of credit, like Boeing, Airbus and high-yield financing companies, Mr. Brace said.
He was a brilliant financier who popularized high-yield financing and came to control the junk bond market in the mid- to late 1980's.
About 18 months later, I followed my managing director to FleetBoston Robertson Stephens, to help found its high-yield finance group.
The fund invests in publicly traded real estate operating companies or investment trusts, securities backed by commercial mortgages and high- yield bridge financing.
Marked by the two-stage buyout of Dex Media at the end of 2002 and 2003, large multi-billion dollar U.S. buyouts could once again obtain significant high yield debt financing and larger transactions could be completed.
Many of the corporate raiders were onetime clients of Michael Milken, whose investment banking firm Drexel Burnham Lambert helped raise blind pools of capital with which corporate raiders could make a legitimate attempt to take over a company and provided high-yield debt financing of the buyouts.
The party will expect significant scrutiny of its financial calculations, especially whether measures like a "Robin Hood tax" on financial transactions and the wealth tax – the latter of which, the party admits, has an "uncertain" yield – will finance the extra spending.
Instead, Mr. Shafei says he has arranged a line of credit from commercial banks worth $100 million to $200 million and added that he would consider offering high-yield debt financing, or junk bonds, in the future.
