Losses on Junk Bonds Sink Foothill Earnings

Foothill Group Inc., stung by losses in its junk-bond holdings, said it lost $1.73 million last year compared with a $10.7-million profit in 1989.

Foothill, a financial services concern with executive offices in Agoura Hills and Los Angeles, said the loss came on a 6% decline in annual revenue, to $95.2 million from $100.7 million.

The loss stemmed from a $16.2-million loss on investments, reflecting “continued price erosion” in the company’s junk bonds. However, the high-yield, high-risk bonds now account for less than 3% of the company’s total assets, Foothill said, down from more than 9% a year earlier.