A report by
Orrick Herrington & Sutcliffe, released today, has
highlighted the risk of high-yield (HY) bond defaults. While
the European market in particular has experienced a boom in
recent years, a near-zero rate of default is an historic
anomaly, claims the report.
Stephen Phillips, partner and co-head of European
restructuring group at Orrick and author of the report, said
that he expects to see a lot of HY restructurings in emerging
markets in particular in the near future.
"The market share of high-yield in the emerging
markets has shot up and, with the current troubles in many of
these markets – particularly oil – we expect
a fair amount of distress," he said.
Because a large...