CMG Capital Management Groupo CEO Steve Blumenthal is quoted in the Bloomberg story Creditors Bawl: How Investors Ignored Risk of Junk-Bond Rout.
Excerpts from the story:
Barring a big rally in the next three weeks, the junk-bond market will post its first annual loss since 2008. That has triggered a wave of redemption requests from fund investors. Lucidus Capital Partners said Monday it liquidated its entire portfolio and plans to return $900 million to clients next month. Funds run by Third Avenue Management and Stone Lion Capital Partners have halted cash redemptions as investor demand drained their liquid assets.
“Too many bad companies have gotten financing that shouldn’t have,” said Steve Blumenthal, chief executive officer of CMG Capital Management Group in King of Prussia, Pennsylvania. “All these people got easy money. A lot of them won’t survive.”
Related. Sample high yield bond commentary and analysis by Steve Blumenthal: