Riskiest Junk Bonds Shunned in Europe on Rising Risk of Default

 

• Thames Water parent failed to make payments on a bond
• CCC bond spreads have reached euro region crisis levels

The junkiest corporate debt is becoming increasingly hazardous for investors amid mounting signs that a default cycle is picking up steam.

The holding company of Thames Water Ltd. this week failed to make payments that had come due on a £400 million bond ($504 million). It follows a plunge in the bond prices of Altice France last month after management told investors they would have to participate in “discounted transactions” to help the firm slash its debt.

https://www.bloomberg.com/news/articles/2024-04-06/rising-defaults-see-investors-shun-risky-european-junk-bonds