Seizing the middle: An untapped opportunity in the high yield bond market

As banks change, so too must their customers. With banks being cajoled into increasing their capital relative to their loans, companies which, in the past, could depend on bank finance are having to seek alternatives. This is opening a new ‘middle ground’ in the high yield bond market – in Europe in particular – offering attractive opportunities to investors seeking income. In our view, the real opportunity for income investors is in this middle market: companies issuing €150m to €350m. The Lipper global high yield bond universe now accounts for £176bn in funds under management, wi...