Bangkok--13 Dec--Standard & Poor's Ratings
European high yield is poised to enter 2007 on a strong footing according to the Standard & Poor's report "Europe High Yield Prospects: Surging Returns Trump Risk Concerns."
"With record issuance volume, healthy returns, and low volatility, the European high yield market has exceeded expectations in 2006," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Defaults have ticked up from record lows, even as there is concern that distress may be suppressed by the lowering of covenants."
Meanwhile, the economic backdrop—supported by vigorous business investment, elevated consumer spending, and strong export activity—is still robust, with growth in the eurozone forecast to reach a five-year high of 2.6% in the current year before decelerating to 1.8% in 2007.
The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com . If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected] . The report is also available at www.sandp.com/gfir , listed under Global Fixed Income Research. If you have not previously registered with the site, you will need to do so to access this material. Registration requires minimal information and is free. Members of the media may request a copy of this report by contacting the media representative name provided.
Media Contact:
Mimi Barker, New York (1) 212-438-5054, [email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760