Trichet won’t kill the high yield market

08 Mar 2011

While interest rates have been at record lows, Europe’s junk bond market has thrived. But Jean-Claude Trichet’s hint of an imminent rise should not cause investors to retreat. There are still plenty of reasons to buy high yield paper.

Europe’s high yield market faces a stern test over the coming weeks as investors digest last Thursday’s comments from ECB president Jean-Claude Trichet, in which he implied that the bank could raise interest rates in April.

High yield borrowers have thrived over the last 18 months with base rates ...

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