{"id":44638,"date":"2023-01-20T14:50:32","date_gmt":"2023-01-20T14:50:32","guid":{"rendered":"http:\/\/www.brandon.ddtest.info\/multisite-test\/european-junk-debt-sales-spring-back-to-life-as-sentiment-improves\/"},"modified":"2023-01-20T14:50:32","modified_gmt":"2023-01-20T14:50:32","slug":"european-junk-debt-sales-spring-back-to-life-as-sentiment-improves","status":"publish","type":"post","link":"http:\/\/www.brandon.ddtest.info\/multisite-test\/european-junk-debt-sales-spring-back-to-life-as-sentiment-improves\/","title":{"rendered":"European junk debt sales spring back to life as sentiment improves"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<div class=\"article-body__context_widget__1xxEe article-body__element__2p5pI\">\n<div class=\"context-widget__content__1X4Oq\">\n<ul class=\"summary__summary__31feP\">\n<li data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__body__yKS5U body__base__22dCE body__body_alt__2kEQu summary__point__NO-2F\">Sales of sub-investment grade bonds picking<\/li>\n<li data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__body__yKS5U body__base__22dCE body__body_alt__2kEQu summary__point__NO-2F\">But remain far from January 2022 levels<\/li>\n<li data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__body__yKS5U body__base__22dCE body__body_alt__2kEQu summary__point__NO-2F\">Firms either selling new bonds or seeking to extend maturities<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p data-testid=\"paragraph-0\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">LONDON, Jan 20 (Reuters) &#8211; Junk-rated companies in Europe have raised $1.4 billion from bond sales this month as investors return to riskier debt after rising interest rates and Russia&#8217;s war in Ukraine froze markets last year.<\/p>\n<p data-testid=\"paragraph-1\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">According to Refinitiv data, those sales so far in January add to almost $2.2 billion worth of sales in December and $760 million in November.<\/p>\n<p data-testid=\"paragraph-2\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">Although sales of sub-investment grade bonds, considered among the riskiest assets globally, remain well below levels over the same period last year, analysts said the pick-up in issuance was positive.<\/p>\n<p data-testid=\"paragraph-3\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">&#8220;The high yield market is opening up after last year, when there was a particularly long period of time where it was broadly closed,&#8221; said Tatjana Greil Castro, co-head of public markets at Muzinich, a fund manager which focuses on credit.<\/p>\n<figure class=\"article-body__element__2p5pI\" data-testid=\"graphic-0\">\n<div class=\"reuters-graphic__image-container__2YWXt\">\n<div data-testid=\"StatefulImage\" class=\"stateful-image__container__hH_Q_ stateful-image__light__2XHJA\">\n<div data-testid=\"Image\" class=\"stateful-image__image__ThpeM\"><noscript><img src=\"https:\/\/graphics.reuters.com\/EUROPE-BONDS\/JUNK\/xmpjklxgbvr\/chart.png\" alt=\"Reuters Graphics\" title=\"\"\/><\/noscript><\/div>\n<\/div>\n<\/div><figcaption data-testid=\"Body\" class=\"text__text__1FZLe text__medium-grey__3A_RT text__regular__2N1Xr text__small__1kGq2 body__base__22dCE body__caption__3L8vY reuters-graphic__figcaption__1lRLn\">Reuters Graphics<\/figcaption><\/figure>\n<p data-testid=\"paragraph-4\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">Some $7 billion of high yield bonds were sold in Europe this time last year, according to Refinitiv. That was just before markets were shut off in February when Russia invaded Ukraine.<\/p>\n<p data-testid=\"paragraph-5\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">Decades-high inflation and aggressive central bank rate hikes also weighed on debt markets with investors shunning risk assets.<\/p>\n<p data-testid=\"paragraph-6\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">More companies are now venturing back into the market, a sign they are willing to test appetite and lock in new funding before interest rates rise further.<\/p>\n<p data-testid=\"paragraph-7\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">Firms are either selling new debt or asking investors to extend the maturity of existing debt, offering in return an increase in the interest they pay.<\/p>\n<p data-testid=\"paragraph-8\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">On Thursday, telecommunications firm Telecom Italia <a data-testid=\"Link\" href=\"https:\/\/www.reuters.com\/companies\/TLIT.MI\" target=\"_blank\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\" rel=\"noopener\">(TLIT.MI)<\/a> started selling at least $500 million in bonds to refinance short-term debt, while Altice France <a data-testid=\"Link\" href=\"https:\/\/news.google.com\/business\/media-telecom\/altice-kicks-off-process-extend-maturing-loans-increase-pricing-memo-2023-01-19\/\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\">kicked off<\/a> a process to extend a total of just over $6 billion and roughly 2 billion euros ($2.2 billion) worth of loans to August 2028.<\/p>\n<p data-testid=\"paragraph-9\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">Last week, Air France SA-KLM <a data-testid=\"Link\" href=\"https:\/\/www.reuters.com\/companies\/AIRF.PA\" target=\"_blank\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\" rel=\"noopener\">(AIRF.PA)<\/a> sold a debut sustainability-linked bond worth one billion euros, giving the European credit market its first major high-yield deal in months.<\/p>\n<p data-testid=\"paragraph-10\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">The cost of insuring sub-investment grade debt exposure this week fell to its lowest since April, a further sign that sentiment towards risk assets is improving .<\/p>\n<p data-testid=\"paragraph-11\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">While most corporates have addressed junk debt maturing this year, there are a few companies that are under pressure to refinance as soon as possible. Analysts say that such firms could struggle with selling new debt and might require shareholder support to entice investors.<\/p>\n<p data-testid=\"paragraph-12\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">Italian medical device firm LimaCorporate, for instance, on Tuesday started selling a 295-million-euro bond to refinance its current 275 million euros bond maturing in August, according to a memo seen by Reuters. Its private equity owner EQT is putting new capital in the business to strengthen it and get investors more comfortable with the deal.<\/p>\n<p data-testid=\"paragraph-13\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI\" style=\"font-size:20px\">($1 = 0.9240 euros)<\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__default__UPMUu sign-off__text__PU3Aj\">Reporting by Chiara Elisei; editing by Dhara Ranasinghe and Emeia Sithole-Matarise<\/span><\/p>\n<p data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Our Standards: <a data-testid=\"Link\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" target=\"_blank\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\" rel=\"noopener\">The Thomson Reuters Trust Principles.<\/a><\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/news.google.com\/__i\/rss\/rd\/articles\/CBMib2h0dHBzOi8vd3d3LnJldXRlcnMuY29tL21hcmtldHMvZXVyb3BlL2V1cm9wZWFuLWp1bmstZGVidC1zYWxlcy1zcHJpbmctYmFjay1saWZlLXNlbnRpbWVudC1pbXByb3Zlcy0yMDIzLTAxLTIwL9IBAA?oc=5\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sales of sub-investment grade bonds picking But remain far from January 2022 levels Firms either selling new bonds or seeking to extend maturities LONDON, Jan 20 (Reuters) &#8211; Junk-rated companies in Europe have raised $1.4 billion from bond sales this month as investors return to riskier debt after rising interest rates and Russia&#8217;s war in &hellip;<\/p>\n","protected":false},"author":1,"featured_media":44639,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[161],"tags":[],"_links":{"self":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/44638"}],"collection":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/comments?post=44638"}],"version-history":[{"count":0,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/44638\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media\/44639"}],"wp:attachment":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media?parent=44638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/categories?post=44638"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/tags?post=44638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}