Junk Bond Index Plunges: Reflecting what appears...

Junk Bond Index Plunges: Reflecting what appears to be the worst month ever for the volatile junk bond market, the Salomon Bros. high-yield market index fell 3.87% in August. The index’s decline, its biggest on record, came amid weakness in the overall bond and stock markets after Iraq’s Aug. 2 invasion of Kuwait. In the junk bond market, some of the hardest hit securities were those of companies in cyclical business such as National Gypsum Co., a building materials firm, and Burlington Holdings, a textile maker.