Deals
Buyouts to Bolster Europe High Yield in 2018 After Stellar Year
- 96.0 billion euros of bonds sold in primary, the most ever
- Riskier, triple-C deals set to feature strongly in 2018
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M&A activity will likely spur European high yield issuance over the coming 12 months after the market proved its mettle in 2017 -- a year characterized by riskier deals and record breaking volumes, as issuers took advantage of low yields and increased demand for the sector.
The primary market brushed off any shocks this year stemming from a raft of disappointing earnings from high profile and highly leveraged names in the latter part of 2017. With little headline risk on the horizon and the need for yield remaining, market participants expect buyout activity to be aggressively well bid, opening the door to even more triple C issuance and risk-on strategies in 2018.