Here’s What to Watch in European High-Yield Bonds This Week
2020-04-20 10:23:28.14 GMT

By Marianna Aragao
(Bloomberg) — Investors are looking for evidence the
primary market for Europe’s junk borrowers will stay open after
last week’s deal from Verisure that ended a near two-month
hiatus.
After the security systems provider priced a 200 million
euro floating rate note on Thursday, more borrowers may be
preparing to tap the markets, according to JPMorgan & Chase Co.
analysts.
“Anecdotally we hear that there are issuers on the
sidelines waiting for a suitable window to approach the
markets,” credit analysts at JPMorgan said in a note on Friday.
The Verisure deal was supported by a “stronger demand
environment” fueled in part by fund inflows, they added.
Those businesses resilient to Covid-19 are expected to tap
the market first going forward, Spread Research analysts said.
Companies more sensitive to the pandemic may come with more
onerous call structures, as seen with Verisure.
Elsewhere, high-yield issuers continue to tap into
government support programs for additional liquidity, with
French retailer Fnac Darty the latest to secure state-backed
loans.
Meanwhile, Grupo Antolin, McLaren, Solocal, Italmatch and
Upfield are due to publish earnings this week. Hurtigruten is
expected to release an investor update on Covid-19 on Tuesday.