Kia Motors Corp. canceled a $500-million bond sale Thursday as skittish investors continued to back away from the market for riskier assets.
In recent days at least seven companies have canceled or postponed at least $2.2 billion in bond and note sales amid concern that corporate debt could suffer the same kind of losses incurred by bonds backed by sub-prime mortgages.
"This may mark a tipping point in the credit cycle," said Robert Appleby, who helps manage $2 billion at ADM Capital in Hong Kong. "If we see a shakeout, it will be a healthy one because it will prevent deals from being priced incorrectly."
Retailer Dollar General Corp., which is being acquired by Kohlberg Kravis Roberts & Co., sold $1.9 billion of notes Thursday after restoring to the deal $725 million of riskier securities it had cut earlier in the day.