European Bond Traders Suffer High-Yield Anxiety on Losses
This article is for subscribers only.
Warning signals are starting to flash for Europe’s biggest money managers as a selloff in the U.S. high-yield bond market shows signs of crossing the Atlantic.
Investors in London and Edinburgh say they’re either cutting holdings of junk notes, buying credit derivatives to insure against losses or moving into high-yielding debt backed by collateral, such as oil rigs and cable networks.