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