HY firms stash the cash at record rate

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By Owen Sanderson
29 Sep 2020

Research from Bank of America shows European high yield issuers boosted their cash holdings by €97bn year on year, a 60% increase, and a record level for nearly all regions and sectors.

Substantial chunks of this liquidity have come from state-backed loan guarantee programmes, with France alone having lent around €120bn to larger companies under its scheme.

“IG companies are now basking [in] their epic liquidity raise[s] of Q2 this year,” said BofA. “High yield companies have had to be ...

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