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Europe's Junk-Bond Boom Triggers Alarm as Safety Nets Weakened

Europe’s booming junk bond market is provoking alarm among analysts who say investors are letting down their guard and risking future losses.

Dutch department store operator Hema BV, home improvement retailer Maxeda DIY Holding BV and supercar maker McLaren Group are the latest in a string of companies that have sold bonds with weaker investor protections, known as covenants, and with more loopholes written into the documents that govern the debt.