Infamous ‘No-Coupon-At-All’ Club May Soon Welcome Another Member

It’s one of the bond market’s most dubious honors, a mark of shame that among even the very worst deals in history, few carry.

Dubbed ‘no-coupon-at-all,’ it’s reserved to describe securities that default before making a single payout. The distinction is so rare that it’s generated a cult-like following among traders, who recall just a handful of transactions in recent decades that fit the bill.

But now, they’re on alert for another potential entry into the infamous club. Hertz Global Holdings Inc. last week issued a so-called going concern warning, telling creditors it may be forced to file for bankruptcy ...