Do high yield investors read the news? During the first few
months of 2011 it was tempting to believe they didn't. Through
unrest in the Middle East, Libya's revolution, Japan's
earthquake and the continued sovereign debt crisis, the numbers
of deals continued to rise, unhindered by international
calamities. While global events battered equity market
sentiment, high yield ploughed on, reaching record levels.
The bonds enjoyed the strongest start to the year on record,
with $103 billion sold globally in the first three months
following a record 2010. Thirteen deals from April 1 to April
14 meant $32.2 billion worth of European bonds were issued in
the year to that date, according to data from Dealogic. That's
80% more than was issued at this point in last year's
But despite these volumes, high yield is in a state of
conflict. A letter seen only by IFLR and...