“If we can’t come up with a structure, the future of high yield in Europe is under threat.” The concern of Clifford Chance securities lawyer John Connolly is justified. There were just 14 high-yield deals in Europe in the first four months of this year, compared with 134 in the US, according to investment banking research firm Dealogic. European high yield isn’t working, and only the region’s lawyers can rescue it.
An investor in junk bonds in the US can expect to get about a third of the money invested back from a borrower that defaults.
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