A deepening mess in the U.S. subprime loan market has sideswiped a rash of corporate junk bond issues, prompting U.S. regulators to reassure jittery investors that the financial system remains sound.
Quebecor Media, a unit of Montreal-based Quebecor Inc. [QBR.A-T] , scrapped a planned $750-million (U.S.) bond sale this week in the face of growing investor anxiety about the subprime shakeout.
“The shaky state of the market this week has made it difficult for even well-known, solid credits like Quebecor Media to borrow money,” bond analyst Justin Monteith of KDP Investment Advisors remarked in a research note Wednesday.
