Junk Bond Sales Heading for Shakeup After Big But Boring Year

  • Europe supply tally of 78.2 billion euros topped only in 2017
  • LBOs and lower rated credits seen as key drivers for next year
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After a year dominated by refinancings, things could be about to get a lot more interesting for Europe’s high-yield market in 2020.

Bankers expect leveraged buyouts and lower rated credits to drive a bigger share of bond sales next year as investors dial up their appetite for risk in a bid to secure market beating returns. In contrast, a mood of investor caution has characterized much of 2019 amid concerns around rising default rates and a turn in the business cycle.