Deals
Risky Business Set to Dominate High-Yield Bond Market in 2018
- LBO, single B deals expected to feature in bigger way: bankers
- U.S borrowers likely to continue to use Europe for debt sales
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If 2017 is judged to be the year of big but boring refinancings for the European high-yield market, next year is shaping up to be a different proposition with leveraged buyouts and lower-rated credits expected to drive a bigger share of bond sales.
Yield-hungry investors have embraced the glut of supply in Europe so far this year, helping borrowers secure ultra-low funding costs and negotiate favorable terms on their bond transactions. This has been fueling issuers’ appetite, and may open the door to more LBO-driven activity, as well as supply from "riskier" credits in 2018, bankers have said.