Phones 4U disaster puts high yield market’s weak liquidity to the test
The value of Phones 4U’s high yield bonds plummeted this week, after the UK mobile phone retailer lost a major contract with Vodafone. Some market participants said investment banks’ shrunken appetite for trading was making it harder for investors to sell out of the decaying paper, and could lead to severe swings in high yield bond trading in future, writes Olivier Holmey.
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