A RECESSION MIGHT HIT JUNK-BOND ISSUERS RIGHT BETWEEN THE EYES.

The article speculates that a recession will have devastating effects on junk bond issuers in the United States. According to Elizabeth S. Mulhare of Standard and Poor's Corp., in time, debt service requirements will explode as sinking fund or deferred interest payments kick in or large maturities become due. Mulhare adds that future default rates will have a painful impact on corporate borrowers.