Europe's Markit iTraxx credit default swap benchmarks rolled into Series 21 last week, throwing the spotlight on the region's expanding high-yield market as Crossover was expanded by 10 names to a total of 60. It is a development that has been welcomed by market participants and reflects the growing importance of bond market financing to Europe's sub-investment grade corporates. "The aim is to expand the CDS market to reflect the fact that the high-yield bond market has grown a lot," said Greg Venizelos, senior credit strategist, European credit, at BNP Paribas. "As banks continue to derisk and delever and balance sheets shrink, there will be less leveraged lending and high-yield companies will need to look to the bond market for their funding."
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