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LevFin High Yield Bonds

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US issuers and insurance companies could benefit as Moody’s relaxes parts of its approach
Investors attracted by relative value versus loans but are not blind to risk
Company takes advantage of high yield revival
Floridian manager registered the vehicle in Ireland with article 8 SFDR classification
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  • Rating: Ba2/BB-/BB
  • A $1.87bn-equivalent deal from ConvaTec Healthcare this week was to have put the seal on a blistering 2010 for the European high yield bond market. But with the deal structure being revised as EuroWeek went to press, including a reduction in the euro tranches of the deal and an increase in the loan at the expense of the bond, the issue was instead a reminder that there remain limits to what can be achieved.
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  • European high yield bond funds, already flush with cash, are facing a Eu7bn wave of further inflows as issuers redeem deals as a result of acquisitions or to refinance.
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  • Nearly $3bn of new issues for two more US issuers has underlined that recent volatility has not derailed European high yield investors’ record year. Water treatment firm Nalco completed a heavily oversubscribed $1bn high yield offer on Thursday while medical technology firm ConvaTec Healthcare is set to close a $1.87bn deal next week.