We've seen signs that the IPO market was going to be a new major source of investment capital for high-yield equity structures. One deal that caught our attention was PetroLogistics (PDH) which is really an example of a company that should have been able to handle their financing needs in the private markets but turned to an IPO offering a high (but variable) dividend payout.

Chronically low interest rates have driven investors towards opportunities these sorts of equity investments and created high demand for new issues that promise yields of about 8% versus the typical 4-6% that . . .

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