Euro Junk

09/12/08 09:59AM EDT
European junk bonds are now trading at higher yield levels than equivalent US credits and, according to Bloomberg, more than 30% of European high-yields are trading at distressed levels – that's the most since 2003.

The easy money story of 2005-2007 was global indeed – and so is the aftermath. As European economies cool down and interest rates climb, bond buyers will continue to demand higher risk premiums.

Andrew Barber
Director
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