High-Yield Outflows Begin to Take a Toll on New Issue Market

  • European funds suffer redemptions for 18 weeks in row: BofAML
  • Strain in primary as Virgin Media prices wide end of talk
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The positive momentum in Europe’s high-yield primary market this month may be short lived. Two weeks after the window for issuanceBloomberg Terminal opened, and 7.1 billion euros ($8.7 billion) of new issues later, persistent fund outflows seem set to slow sales as a looming trade warBloomberg Terminal weighs on the market.

Investor outflows are “probably the biggest concern” in the European high-yield market, Armin Peter, global head of DCM syndicate at UBS Ltd, said at a briefing event on Wednesday.