Debut Bond Sales Swell in Europe as Risks Mount: Credit Markets
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Companies are debuting a record amount of bonds in Europe as investors demanding higher yields show greater tolerance for untested borrowers who are seeking to diversify funding as banks curtail lending.
Finnish insulation maker Paroc Group Oy and French car parts distributor Autodis SA are among 54 first-time issuers that sold 20 billion euros ($27 billion) of notes this year, compared with 40 companies selling 14 billion euros in the same period last year, according to data compiled by Bloomberg. More than 75 percent were either unrated or below investment grade, with more than half of those ranked B or lower.