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Technology Stocks : CDRD (CD Radio) -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (357)	11/20/1997 4:20:00 PM
From: Candle stick	Respond to of 904

Thursday November 20, 12:15 pm Eastern Time U.S junk bond market braces for end-of-week flood NEW YORK, Nov 20 (Reuters) - A massive amount of new junk bond supply, totalling around $3.0 billion, is expected to flood the U.S. market toward the end of the week, market sources said. Syndicate officials are worried the market will have trouble absorbing so many new issues in such a short time. As a result, some deals will get postponed while others will have to adjust their yields upward, they said. ''It's difficult to get investors' attention,'' said one official. ''They're saying: 'I will focus on a handful of deals I like and drop the rest.' That means trouble for some deals.'' Investors are now requesting a 1/4 to 3/8 percent yield premium on new issues over comparable outstanding bonds, compared to earlier this year, when new issues were pricing in line with secondary market bonds, market sources said. ''People really want to be compensated for taking on additional risk this late in the year,'' said one syndicate official. ''Accounts are just being much more selective.'' Separately, American Bumper Manufacturing postponed a $120 million high-yield debt offering scheduled for this week, market sources said. Sources said the deal was postponed because American Bumper, an auto parts maker, is in jeopardy of losing its preferred status with a major car manufacturer. Officials at Chase Securities Inc, the lead underwriter of the offering, did not return calls. Junk bond deals expected for Thursday include Teligent Inc's $400 million two-part offering, Poland Telecom Operators $140 million debt and warrant offering, CD Radio Inc's (Nasdaq:CDRD - news; Nasdaq:CDRC - news) offering of debt and warrants and Crown Castle International Corp's $125 million debt offering. In the high-grade debt new issue market, the supply pipeline appears less crowded as many issuers have chosen to avoid the market due to poor technicals, sources said. High-grade deals expected for the remainder of the week include Ingersoll-Rand's (NYSE:IR - news) offerings of four- and 10-year debt and Misssissippi Chemical Corp's (NYSE:GRO - news) 10- and 20-year debt deal. ................ As usual it looks like CDRD will have to pay through the nose to float their junk paper..............