Breakingviews

High yield U.S. tourists sail into European storm

February 16, 2012

The European Central Bank’s cheap money and the siren call of high yields are luring global investors into the European junk bond market. But the region’s slowing economy could suck the wind out of the market’s sails.

Debt binge leaves bad Wind in Greece

October 30, 2009

Wind Hellas recently spoke to 29 potential bidders in an attempt to sell the overleveraged Greek telecoms operator, but only two have shown any real interest. Both have a pre-existing interest in the company: they are its junior creditors and current shareholders. Neither has come up with a solution to Wind's problems.

Heidelberg only half way home with bond deal

October 14, 2009

HeidelbergCement is grappling with its fearsome debt burden rather well. The heavily-indebted German building materials maker has increased its planned 1.5 billion euro bond deal by as much as a billion euros and extended the term of the new debt. That's a good move; showing Heidelberg has learned from the mistakes of the past. But far more will be needed before it's safe.

Short memories plague bond market

October 9, 2009

There's something more than a little unnerving about the revival of the high yield debt market. Whipped on by low interest rates and injections of liquidity by central banks, credit investors are increasingly piling into junk bonds.

Stuffed on junk

October 8, 2009

Risky assets like high-yield bonds have been riding high this year, but it looks like it's time to get sober.