Linklaters sees bright future for high yield
Some $550bn of leveraged buy-out loans coming due between 2012 and 2016 could help develop a more mature European high yield market and should pose an opportunity for private equity and alternative capital providers, according to lawfirm Linklaters. In its report Negotiating Europe’s LBO debt mountain, the law firm further noted that debt restructurings were likely to become more common.
All this is due to the sheer volume of European LBO loans maturing in the next four years, coupled with a weaker European economic outlook, the looming end of CLO reinvestment periods and banks capital restrictions due to regulations.
The best performing companies will likely be the first
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