High yield bid rock steady as issuers defy EM sell-off

rock climbing
By Stefanie Linhardt
31 Jan 2014

When the going gets tough, high yield investors often get going, too — out of the door. So far, in this bout of tapering-induced risk-aversion, that has not happened. While stockmarkets sold off this week, CDS indices widened and emerging market bonds plunged, high yield issuers in Europe kept launching and printing bonds, writes Stefanie Linhardt.

Six high yield deals were priced in the first four days of this week, and another three new issues were announced. Three of the deals even had an emerging market tinge. Investors didn’t seem to mind a bit.

“The sell-off has been pretty marginal in high yield,” said ...

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