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High Yield Investors Sweat for Return in Europe 'Sellers Market'

  • Buyers seek strategies amid low coupon, issuer-friendly terms
  • New HY bond sales set to reach record in 2017: Bloomberg data
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European high-yield bond investors are having to work harder in a busy primary market to preserve returns, as thin coupons and issuer-friendly structures become the new normal.

With borrowers enjoying one of the best markets in recent years to issue new debt, portfolio managers are having to adopt different strategies including increased exposure to higher-rated issuers, looking at U.S. companies selling bonds in Europe or simply reducing their participation in new transactions.