LONDON: Potential bond issuers in Europe’s high-yield market may face higher coupon costs to get deals done after a jittery first quarter characterised by negative total returns, continued fund outflows and escalating trade tensions between the world’s top two economies.
“Investors have become more cautious on credit risk and therefore more selective, but appetite for high quality names is still there, just slightly more yield is needed,” said Simon Francis, co-head of leveraged finance EMEA at Citigroup Global Markets Ltd.