Taylor Wimpey stg bonds sink on funding worries

LONDON (Reuters) - Bonds of housebuilder Taylor Wimpey dropped sharply on Wednesday after the company said it had failed to raise the extra capital it said it would seek just two days ago, traders said.

Taylor Wimpey 2019 sterling bonds dropped to be bid at 40 percent of face value on Wednesday from mid-to-high 50s a day earlier, traders said, noting that the bonds were illiquid.

Fitch Ratings in June cut Taylor Wimpey's credit ratings to "junk" status, saying the company potentially faced problems with its debt covenants.

(Reporting by Natalie Harrison)