Death Rattle or Just More Boom? Europe Embraces Risky Credit
- Burger King France sells PIK notes synonymous with market top
- Spreads have widened as caution seeps into global markets
Clients order their meal at a Burger King store in Saint-Lazare railway station in Paris.
Photographer: Thomas Samson/AFP via Getty Images
After another bout of caution rippled through global markets this week, a flurry of high-yield deals can be taken one of two ways. It’s either a last-minute dash for cash before the cycle peaks or proof of market resilience.
A succession of eye-catching sales has been absorbed in the past few weeks
with barely a hint of resistance by money managers hungry for returns. Burger King France SAS was the latest, defying a broader risk-off mood this week to sell a CCC-rated bond to fund an acquisition and repay debts. About 27 billion euros ($32 billion) worth of high-yield bonds has priced in the region this quarter, the third-busiest on record, according to data compiled by Bloomberg.