European high-yield sees massive levels of default

The default level of European high-yield bonds last year was close to 40% because of the high concentration of telecom stocks in the sector. James Gledhill, manager of the New Star High Yield fund, says that two years ago, 60%-70% of the European high-yield sector was made up of telecom stocks and these have now been technically wiped out, with Colt Telecom the only company surviving. As these stocks are cleared out of the index, Gledhill says the sector now looks more attractive as what is left is of much better quality. Good quality companies that exist in the sector include Focus D...