Sovereign storm lays bare high yield’s cyclicality

From boom to gloom. That’s a pretty accurate description of European high yield in 2011. Some wild claims for the market’s maturity were made up to June — but with a mere handful of deals sold since, they don’t look so accurate. With sovereign debt storms still raging, issuance is likely to remain difficult in early 2012. Yet as Stefanie Linhardt reports, there is plenty of money waiting to pour into the market when the economic upswing comes.