One of the world's most iconic activist hedge fund managers has had its latest bond rated as junk, due to its reliance on debt and uncertain income flows, which has also inflicted a negative outlook on the company.

Icahn Enterprises, the holding company of the $6.6bn activist hedge fund run by veteran Carl Icahn, has had its a $500m bond issuance, which was proposed yesterday, rated at Ba3 by Moody's. This classification falls into the "junk" category.