Investors pile into Fiat and Pernod but retreat in secondary

11 Mar 2011

Fiat Industrial and Pernod Ricard sold blowout crossover bonds this week as Europe’s high grade investors continued to pile into high beta, high yielding deals.

Fiat Industrial and Pernod were able to issue their notes with investment grade documentation and without high yield covenants, despite both being rated junk.

"The demand for Pernod and Fiat’s deals demonstrates the chase for yield among investment grade accounts," said Philippe Bradshaw, head of European corporate syndicate ...

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