By early October this year, the European high-yield market had already set an all-time annual issuance record of €36bn and, with a busy fourth-quarter expected, could end the year in the €40bn to €45bn range.
On the demand side, volatile equity markets and a low-interest-rate environment have sent investors searching for new opportunities and, with a tentative economic recovery and corporate default rates falling, they are willing to bet on B or BB rated corporates in return for juicy 6% or 7% coupons.
