UBS Wonders If High Yield Bond Offerings Have Reached "Capacity"

In a yield starved market environment, when benchmark government bonds yield close to zero for the first time in history, a UBS report wonders if debt markets are approaching capacity? What the report does not address to any significant degree is that supply and demand in a free market adjusts yield to accommodate for debt market capacity. In search of revenue expansion to support the never ending demand for high stock prices, firms engaged in financial engineering Firms are increasingly engaging in financial engineering, releveraging balance sheets and engaging in merger and acquisition gymnastics and corporate share repurchase strategies, all…