Demand for Junk Debt in Europe Is So Strong That PIK Is Back

A spate of successful high-yield bond sales in Europe over the past week has emboldened issuers to offer increasingly risky debt, highlighting how investor appetite has recovered after US President Donald Trump softened some of his tariff plans.

Spanish gaming company Cirsa has started marketing a refinancing of €320 million ($362 million) of payment-in-kind toggle notes, a type of debt that allows issuers to delay interest payments until the final maturity date. It’s typically seen as more risky than conventional junk bond issuance.