'Forum shopping' frustrates European high yield investors

Jessop, Pimco: forum shopping an issue for high yield investors

European corporate bond investors have expressed concern that struggling companies are increasingly moving abroad to avoid paying back creditors.

Over the past year a number of issuers have moved their operations to different jurisdictions in order to take advantage of more flexible bankruptcy laws, a process known as “forum shopping”.

Under EC insolvency regulation, a company facing a possible restructuring need only move its head office, or “centre of main interests” (COMI), to another country

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: