Acceleration of dispersion in the European High Yield market


Since our last article on future dispersion in the European high yield market, we have observed two things: dispersion has increased sharply at the sector level and the decompression of risk premiums measured by the B-BB spread remains close to its historical average at 234bps (up 55bps since the beginning of the year).

Michael Longeard, a manager specialising in high yield within the Convertibles & Credit division of Ellipsis AM, gives an update.