Are They Masters of Credit or Hype?

To be wholly honest, for those who follow ship finance as closely as we do, these are exciting times. Within thirty days, two high-yield deals have been completed (B+H Equimar, Global Ocean) and two more (Golden Ocean, Navigator Gas Transport) are on the road. Further, from an issuer’s point of view, we see nothing but blue skies ahead. We are currently preparing a comparative review of the B+H Equimar and Global Ocean offerings for our next issue.

What is going on and why? It has been well documented that bankers and investment fund managers are faced with extraordinary inflows of funds for which they have to find a home and are under pressure to show superior returns. The Investment Company Institute recently reported that most of the money flowing into mutual funds continues to head into funds that invest primarily in American stocks, as it has for the last three years. But funds investing in junk bonds and overseas stock markets also fared well in the second quarter of this year.

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