Rising issuance of high-yield corporate bonds

After a quiet period in August, signs of quickening activity in the new issue market for high-yield corporate bonds are beginning to appear. Last month saw the largest ever non-technology, media and telecoms sector new issue of this bond category in Europe, with Jefferson Smurfit scheduled to raise E900m, denominated in a mixture of US dollars, sterling and euros. It is a measure of investor enthusiasm and the perceived value in the issue, a B-rated stock coming on a likely 10.5% yield, that demand is anticipated to be strong. A favourable reception for the Jefferson Smurfit issue...