Defaults loom but levfin trades like it’s 2019

By Mike Turner, Silas Brown
20 Aug 2020

Europe’s leveraged finance market is forecast to be hit by the biggest wave of defaults since 2009 next year, yet there is a disconnect with market sentiment. As Standard & Poor’s predicts the default rate to reach 8.5%, bullish investors continue to pile in. Silas Brown and Mike Turner report.

Europe’s speculative grade corporate debt market is roaring.

UPC, a subsidiary of telecoms group Liberty Global, is in the market for $3.5bn-equivalent of term loan ‘B’s to support its $7.4bn acquisition of mobile phone company Sunrise. Valeo Foods wrapped up an €897m amend and extend this week. And Ineos ...

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