MGM Mirage, the gaming company controlled by investor Kirk Kerkorian, has raised nearly $700m in the first US junk bond sale in more than a month.

The sale shows the credit markets are slowly opening, but the high yield of 15 per cent that the casino operator had to pay and the quick drop in the price of the bonds in trading yesterday highlight the tough conditions that now exist for junk bonds. October is set to be the worst month ever for the asset class.