Rocky road ahead – proceed with caution
The momentum in the high-yield credit sector has continued in to the new year, but there are signs that it may be a bumpy ride ahead. Nikki Marmery reports
The recent history of European high-yield credit is a tale of superlatives. With a record year for issuance (€29 billion), default rates at an all-time low (2.2% according to Moody’s) and pricing so tight it has caused some analysts to question the very term ‘high yield’, 2004 confirmed the emergence of high yield as a viable asset class in Europe.
The new year has so far continued on the same tracks, with Rémy Cointreau’s e200 million bond issue in early January, priced at the
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