Jefferies International is building up its European restructuring team in anticipation of rising default rates. The firm brought Richard Nevins over from the U.S. last summer to spearhead the European recapitalization and restructuring effort, and has since added Justin Holland and Richard Miller to the London-based team. Miller is an internal hire, while Holland recently received his Masters in Business Administration from the Wharton School.
"While the bond markets are currently strong and default rates are at historical lows, this wheel will turn," predicted Nevins. Jefferies decided to establish a restructuring group in Europe based on the growth in the volume of high-yield debt and the increasing leverage in the market. "Academic research demonstrates that three to five years out from a spike in high-yield issuance, there's likely to be a spike in defaults," commented Nevins.
