Autumn looks tough for HY if woes persist
European high yield issuers could face a tough second half of the year if investors remain frightened about eurozone sovereign debt and economic growth. Poor secondary trading could affect borrowers’ ability to access the capital market, as investors will ask for higher new issue premiums.
"Without resolution of the broader eurozone macro level issues, high yield investors anticipating future episodes of potential volatility will demand premia in primary market high yield coupons," said Edward Eyerman, managing director in Fitchs European leveraged finance group in London.
Fitch pointed out in a report that even
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