European high-yield issuance forecast to rise

Wheat fieldThe European high-yield bond market, which represents a fifth of the €1.3 trillion global market, is set to grow with record issuance predicted this year. According to estimates from Credit Suisse, European corporates will issue €110 billion of high-yield bonds in 2014 as they begin to tap investors for the capital needed to grow. “US corporate issuers still dominate the market, but new opportunities can be found in Europe and emerging markets,” says a report by the high-yield debt team at Candriam, formerly Dexia Asset Management. “Investors are increasingly looking at companies from southern Europe, most of which are making their first steps into the bonds markets.” According to ratings agency Moody's, high-yield corporate issuance from European peripheral countries such as Italy, Spain, Portugal and Greece doubled in 2013 to account for 27% of total EU high-yield issuance that year, up from 18% the year before, a result Candriam calls “a surprising yet positive sign”. Meanwhile, high-yield issuance in the US was $324 billion (€234 billion) last year, 6% less than the record achieved the previous year. ©2014 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.