‘Peak Greed’ Fuels Record Junk Bond Sales in Europe

One of the riskiest corners of the European bond market is enjoying its busiest January ever as companies rush to grab ultra-cheap yields and some of the more dubious instruments popular ahead of the financial crisis resurface, Bloomberg News reported. Junk-rated borrowers lined up close to 7 billion euros of issuance into the market this week, with sales nearing the 10 billion euro mark ($11 billion) this month, Bloomberg data show. “We’re definitely in peak greed territory,” Olivier Monnoyeur, a portfolio manager at BNP Paribas Asset Management, which overseas 436 billion euros of assets. “We’ve seen this movie before, and it doesn’t end well.” From Bulgarian telecoms providers to the carpet makers to the British royal family, companies across Europe are marketing jumbo multi-currency debt packages. Read more

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