Bond Distortions Heighten Allure of Europe’s Hybrid Debt Markets
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The appeal of risky debt is deepening in Europe, even as credit quality slides and compensation shrinks.
The balance has shifted in favor of companies, which are on pace to sell a record amount of hybrid bonds this year. Non-financial borrowers have already issued more than 19 billion euros ($21 billion) of the low-ranking notes following 28 billion euros in 2014, according to data compiled by Bloomberg, and analysts are upping their forecasts.