Citi: Retail high yield is too risky

Author: | Published: 9 Nov 2011
While demand for retail high yield issues is likely to be strong, there are still a lot of legal and reputational risks, according to a Citi in-house counsel.

Germany’s Bond M market and the London Stock Exchange’s order book for retail bonds (ORB) allow for the sale of bonds, including high yield bonds, directly to retail investors with no covenants. The product provides an attractive alternative to low yielding bank deposits and volatile equity markets for retail investors.

Tim Odell, director and deputy general counsel, banking and capital markets origination...