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The article states that investors were retreating from the junk-bond market as of late September 2015, which threatened to stem a trend of corporate mergers and acquisitions (M&A) and to slow the growth of U.S. stocks. According to the article, U.S. issuance of high-yield bonds, also known as junk bonds, had declined by 1.4 percent as of late September 2015 compared to the year prior. The article states that decreased demand for junk bonds forced European cable firm Altice NV and U.S. chemical company Olin Corp. to reduce the size of bond sales.

The article cites an analysis conducted by the newspaper The Wall Street Journal to state that several large U.S. bond mutual funds invested at least 15 percent of their money in rarely traded securities, in contrast to the views of the U.S. government agency the Securities and Exchange Commission (SEC). The article states that the SEC was expected to propose rules to address the trend on September 22, 2015. The article presents comments from former SEC acting director of trading and markets John Ramsay. INSET: Behind the Journal's Findings.

The article discusses the high-risk investment strategy of U.S. financial services firm Franklin Templeton portfolio manager Ed Perks, particularly concerning the Franklin mutual fund the Franklin Income Fund. The article discusses the influence of former Franklin Templeton executive Charles B. "Charlie" Johnson on Perks, the investment strategies of Perks in the energy industry, and presents comments from Perks.

The article states that debt investments managed by firms including Franklin Resources Inc., Blackstone Group LO, and Oaktree Capital LLC were facing losses on investments in energy exploration-and-production companies such as Warren Resources Inc., Goodrich Petroleum Co., and Energy XXI Ltd. as a result of falling oil prices in 2015.

The article discusses the potential role of U.S. financial services firms such as OppenheimerFunds Inc. and Franklin Advisers Inc. in negotiations concerning the restructuring of about $72 billion worth of debt incurred by Puerto Rico. According to the article, OppenheimerFunds and Franklin Advisers owned about 15 percent of the debt. The article presents comments from financial services firm Pacific Investment Management Co. executive vice president David Hammer.

The article states that, as of mid-June 2015, investors removed $12.5 billion from the Overland Park, Kansas, firm Waddell & Reed Financial Inc.'s Ivy Asset Strategy Fund and Ivy High Income Fund in the past 12 months. According to the article, Waddell & Reed fired junk-bond fund manager William Nelson in July 2014. The article also discusses the strategy of Asset Strategy Fund manager Michael Avery and regulations devised by the U.S. government agency the Securities and Exchange Commission (SEC) concerning money-market funds.

The article discusses a study conducted by the firm HFR Inc. commissioned by the newspaper "The Wall Street Journal" that states that hedge-fund managers with fewer than $5 billion took in nearly half of $76.4 billion committed to hedge funds after collecting 37 percent of new capital that was invested in 2013. The article offers comments from University of California chief investment officer Jagdeep Singh Bachher.

The article reports that the Puerto Rican government and its hedge fund creditors including Brigade Capital Management LP and Centerbridge Partners LP have hired former officials of the International Monetary Fund (IMF) to advise on the commonwealth's debt crisis. The government has hired former IMF managing director Anne Krueger, while former IMF Western Hemisphere official Claudio Loser has been retained by the hedge funds. Puerto Rico's debt exceeds $70 million.

The article discusses actual and potential losses for banks on loans they have made to energy companies. Bank of America Corp., Wells Fargo & Co., and J. P. Morgan Chase & Co. are trying to sell a $1.3 billion loan to C & J Energy Services Inc. for 85 cents on the dollar. Banks including Morgan Stanley are trying to sell at a discount an $850 million loan that financed purchases of natural-gas assets by Vine Oil & Gas LP and private equity firm Blackstone Group LP.

The article reports that banking companies Deutsche Bank AG and J. P. Morgan Chase & Co. canceled plans to sell Argentine sovereign debt in England. The banks acted after U.S. Judge Thomas Griesa called a hearing to discuss the sale. Griesa had previously ruled Argentina could make no payments to bondholders until creditors including hedge-fund firm Elliott Management Corp. who did not assent to Argentina's debt restructurings in 2005 and 2010 are paid off.

The article reports that several prominent investment firms are raising money to invest in the stocks and bonds of energy companies whose valuations have fallen sharply due to a steep drop in oil prices. Asset manager GSO Capital Partners plans to raise up to $1 billion to invest in the distressed debt securities of energy companies, while investment company Halcyon Asset Management will focus on energy stocks. Others looking to invest include hedge-fund manager Wilbur Ross.

The article discusses management company Elliott Management Corp.'s economic gains after using credit-default swaps in a bet related to the bankruptcy of entertainment company Caesars Entertainment Corp. The article focuses on Elliott's work to protect the investment including threatening to derail an overhaul of certificates of deposit (CDS) contracts by the International Swaps and Derivatives Association (ISDA).

The article discusses private-equity firm Apollo Global Management LLC's efforts to salvage its investment in casino operator Caesars Entertainment Corp. Caesars' biggest unit, Caesars Entertainment Operating Co. (CEOC), is nearing a bankruptcy filing. Apollo has worked to transfer assets from CEOC to other affiliates of Caesars Entertainment Corp., thus permitting Apollo to retain a share of the company even as creditors are being asked to accept less than what they are owed.

The article discusses the use of credit-default swaps (CDS) by activist investors. A form of insurance on corporate debt, CDS have been exploited by hedge funds and other activists seeking to either push a company into default or stave it off. Specific examples cited include those related to Sabine Oil and Gas LLC and retailer RadioShack Corp.

The article reports that an emerging-market bond fund managed by Pacific Investment Management Co. the Pimco Emerging Markets Bond Fund, has declined 9% in December 2014. The fund has significant investments in bonds issued by Russian companies, which have lost value amid a sharp decline in the Russian ruble.

The article reports that several hedge funds are positioning themselves to gain control of coal companies such as Walter Energy Inc. and Alpha Natural Resources Inc. by acquiring their bonds at distressed prices. Apollo Global Management LLC and Caspian Capital Management are among hedge funds who might try to swap their debt in Walter for a controlling share of equity in the event Walter files for bankruptcy.

The article discusses how Franklin Templeton Investments mutual-fund manager Michael Hasenstab invests heavily in government bonds in foreign countries. Topics include the potential impact on the global economy if investors told him to sell, his work with Ukraine's 2013 deputy prime minister Serhiy Arbuzov after the International Monetary Fund denied the country loan assistance, and concern that his work with Hungarian Prime Minister Viktor Orbán shows support of Orbán's controversial policies.

The article discusses the training of bond traders at financial firms such as BlackRock Inc. to trade hard-to-find bonds. Topics include connecting traders electronically between investment firms as opposed to trading through Wall Street banks, the purported difficulty in commoditizing bond analysis and trading, and decreased bonds holdings due to U.S. bank regulations.