Europe de-couples from weak US junk bond market
As cash flows into the hands of high yield bond investors in Europe, the sector is performing strongly and new issues are being snapped up. There has been a curious reversal of roles between European and US buyers. US investors used to provide a comforting guarantee of success for European deals. Now, as the US high yield market turns bearish, Europeans fear that the presence of desperate US buyers will infect deals with the taint of failure.
The European high yield bond market has, up to now, not been known for its independence.