Pressure mounts in risky market
The unwelcome onslaught of formerly high-grade European credits on the high-yield bracket has increased the risks in an already concentrated and volatile market, increasing investor uncertainty.
The market has been talking about fallen angels for a good 18 months now and it might be time for it to come up with a different analogy. It's not just that it's a horrible cliché - more to the point is that it is rather inaccurate in view of the extent of the problem. The euphemistic alternative - cross-over debt - is even less descriptive. If we have to stick with angels, Euromoney would prefer angels-falling-violently-en-masse-and-still-plummeting.
This isn't very catchy but accurately describes what happened in the European high-yield market in the third quarter this year.