Blackstone: High-yield bonds, leveraged loans still 'frothy'

Joseph Baratta, in an image from a Blackstone video
Source: Blackstone

One of the world's leading private market investors still thinks that some bonds and loans are dangerously priced.

"Sub-investment grade corporate credit markets are as frothy as they've been," Joe Baratta, Blackstone Group's global head of private equity, said Tuesday at the Wall Street Journal Private Equity Analyst Conference in New York.

Baratta, noting the single-digit interest rates offered by leveraged loans and high-yield or "junk" bonds, said such prices were "unprecedented" and "not unsustainable."