Peak Junk Bond Bubble—The Case Of The WeWork Bond Sale

But investors are lusting after higher yields, and companies are taking advantage of them while they still can, which makes sense, particularly if it’s a unicorn with long-term lease obligations out the wazoo, whose net loss – which doubled to nearly $1 billion – is bigger than its revenues.

A company like this needs a lot of cash to burn. After junk-rated Netflix’s lightning-fast “drive-by” bond sale of $1.9 billion on Monday, it’s now junk-rated WeWork’s turn with its own $500 million bond sale that may well be upsized by a large amount in face of ravenous investor demand.