Lack of underwriting contributes to HY deal shortage

market fall 230x150
By Olivier Holmey
16 Oct 2014

Banks' reluctance to underwrite high yield transactions in September is contributing to the absence of new issuance this month, leveraged bankers said this week.

That so few banks agreed to underwrite deals in the period immediately before the recent bout of volatility in high yield means there is little incentive to launch new issues, they said.

Because underwriters accept liability on deals, they usually want to sell the debt to investors as ...

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