High-Yield Rally Not Enough to Lure Buyers Into Riskier Debt

  • Some investors get selective due to concerns over credit cycle
  • Last year’s selloff was "not without reason": Merian Global
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Europe’s high-yield bond market has recouped the losses suffered toward the end of last year but that’s still not enough to convince some investors to buy.

Fears of a late credit cycle and expectations that primary supply may pick up is deterring them from subordinated debt or complex credits, fund managers say.