The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

High-yield specialists find a place in the sun

A rash of European high-yield defaults has pointed up the skills of specialist law firms practised in pursuing the interests of bondholders.

       

As the European telecoms sector and its investors work through a painful restructuring, a few US law firms and boutique investment banks are being kept very busy. This is a source of irritation to the big City of London law firms that have eschewed the representation of bondholders in favour of their existing relationships with primary lenders.


As telecoms companies and other industrials grapple with the downturn, defaults have become increasingly common. Restructuring firms that can combine experience of high-yield litigation in the US with track records in Europe are finding themselves in great demand.


By the end of 2001 there was high-yield debt of around $60 billion in issue by companies with a material European presence. Martin Reeves, director of European credit research at Alliance Capital, says: "The resources needed to deal with this situation have not been required before. There was a 16% par default rate for 2001 and some predictions for 2002 are that this could rise to around 30%.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree