Why Schaeffler high yield bond is new market standard

Author: | Published: 16 Feb 2012

Almost a year after clubbing together and campaigning for bondholder rights, European high yield investors may have finally got their way, following the market-moving bond sale by Schaeffler.

The German engineering group’s €2 billion worth of senior secured bonds are the first in Europe to give full, proportional voting rights to bondholders in a restructuring, known as one euro, one vote.

"This is quite a departure from market practice," said Gernot Wagner of Allen & Overy, who led the firm advising Schaeffler.

Historically,...