Junk bond market participants share a viewpoint that restrictions imposed by the Sarbanes-Oxley accounting reforms partly caused a fall in new US issuance.

Under the conditions of new corporate accountability, investment bankers stated that issuers were more careful while offering new bonds before potential investors could see their fully audited accounts.

Companies have already completed their reports on full-year earnings, but some annual reports are still to be released.

Supply in the market increased at the end of the previous year, since issuers benefited from investor enthusiasm for the riskier paper. This year the market faces a decrease in supply, which can be partially prompted by the implication of the reforms, market participants said. If the drop in supply referred to accounting measures, the issuance could increase when filings are made, but mane experts still have doubts that new paper this year could hit the records set in 2003 and 2004.

Last year, issuance in the US got a record worth of $140 bn since companies benefited from low interest rates.