Dealing with drive-bys
Healthy demand for high-yield paper has encouraged issuers to come to market without the formalities of a roadshow. But as John Caserta reports, the performance of these so-called drive-by deals often fails to match investor expectations
Last year, the number of times high-yield companies ignored the roadshow process and brought debt transactions straight to market more than doubled, and investors were quick to snatch up the offerings. But new research suggests that these deals don’t tend to perform as well in the secondary market.
In a study conducted by FridsonVision, a high-yield research provider set up by US Credit columnist Martin Fridson, during the period immediately following the issuance of a new high-yield
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