High yield

With terms being changed on recent high-yield issues, are bondholders now gaining the upper hand in their perennial struggle for better terms and conditions from issuers?


Roman Gaiser, Fund manager, Threadneedle, London

Credit markets, and especially the high-yield market, are characterised by cycles which strongly affect the type and amount of new issuance coming to market. Already this year we have seen a couple of large prints in high yield, driven by underlying LBO deals.

Some of these deals are very highly levered. A couple of years ago an aggressive LBO might have been levered 4.5 times. Now we see deals with leverage greater than 7x. To accept the added risk

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