...Gradual Return of Confidence: Single-`B' issuance recovered in January, notably from legacy repeat issuers, as "risk-on" sentiment returned to the European high-yield (EHY) market after a period of uncertainty and risk-aversion towards the end of 2014. `B' rated bonds accounted for over half of new issuance ¡ the highest monthly share since October 2014 ¡ as their spread to `BB's tightened by 35bp, buoyed by pent-up investor demand and confirmation of the ECB's bond-buying programme. Riskiness From Known Quantities: The vast majority of January single `B' issuance came from repeat issuers, as investors seemed to prefer to take risk in the form of aggressive structures from known credits rather than from debut issuers. The recent withdrawal of Techniplas's proposed bond indicates market sensitivity to risk despite abundant liquidity. EHY Matures but Still Vulnerable: New issuance since 2010 and growing volumes from fallen angels point to a stable source of investor fund flows as maturing...
