Junk Issuers Pounce on Bond Surge to Chip Away at Debt Mountain

Junk borrowers have been piling in to refinance debt after the biggest January rally since 2019.

In the last two weeks, Bombardier Inc. raised $750 million in the US junk market to help refinance debt, Norwegian Cruise Line Holdings Ltd., issued $600 million to refinance loans coming due next year, while Caesars Entertainment Inc. sold $2 billion in new bonds to pay back loans.

Companies are taking advantage of investor demand while they can. The junk bond market was closed for days or even weeks at a time last year. Now there are signs that inflation is softening, ...