BeBeez | Megadeal, Is the Train Starting Again?

Jul 2024

Originally posted by BeBeez on July 1, 2024.

Increased stabilization of rates and decreased debt market volatility have led to a series of high-yield bonds being issued in Europe.

Refinancing happens for two reasons: to extend debt maturities or to take advantage of falling rates.

Unrest in Ukraine sparked a blaze of energy prices in H2 2022 through 2023. However, these rates have since stabilized.

“To this, we must add the sea of liquidity stemming from the availability of high-yield bonds, which are still on the market for medium-large operations. This has also made the supply of debt sources more flexible,” Daniele Candiani, co-head of Lincoln’s Capital Advisory Group in Europe, commented. “Today, it may happen that an issuer with a BB rating collects at a fixed rate of 7% or just above.”

Guaranteed returns are lower in the presence of volatility, when at the level of a global financial crisis. The decline in volatility has reported favorable conditions for the resumption of emissions.

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