The truth about Asian investment banking
EuromoneyFXNews.com

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April 2007

Capital markets: Hungry high-yield investors drive issuers to think about toggles

"Actually, I just pitched one of those today," says a debt capital markets banker when asked whether he detected developing interest among emerging market clients in toggle notes.


Deals involving the structure, whereby issuers may deliver either payment-in-kind (PIK) notes or cash to their investors, have so far been relatively thin on the ground but strong demand for high-yielding paper has driven the cost of toggle notes down to a level that could prove extremely attractive.

The notes are more expensive than straight debt...


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