Companies with junk credit ratings are increasingly issuing bonds for riskier purposes, potentially hindering their ability to pay back bondholders, says The New York Times.

Demand for the bonds has reached record levels this year as investors search for richer yields, which Treasury securities and money market accounts no longer provide.

Also read:

Avoid overrated investments

Don’t reach for yield

Help clients buy bonds

Spanish bonds close to junk

Bond rates to rise?

Vik’s picks: Tap Canadian junk bonds

Investors should choose Cdn bonds: Moody’s

Originally published on