2 Takes On Risky Business: One From Bloomberg + One from Tom Cruise

Your MesaZona blogger is trying "an experiment" to see what works best to attract readers to a story about financial risks and bond buyers . . .

Both use money

What catches your eye?

< This? Or this below from Bloomberg?

 

Risky Business Set to Dominate High-Yield Bond Market in 2018

By Laura Benitez        

‎October‎ ‎23‎, ‎2017‎ ‎4‎:‎48‎ ‎AM

"If 2017 is judged to be the year of big but boring refinancings for the European high-yield market, next year is shaping up to be a different proposition with leveraged buyouts and lower-rated credits expected to drive a bigger share of bond sales.

Yield-hungry investors have embraced the glut of supply in Europe so far this year, helping borrowers secure ultra-low funding costs and negotiate favorable terms on their bond transactions. This has been fueling issuers’ appetite, and may open the door to more LBO-driven activity, as well as supply from "riskier" credits in 2018, bankers have said.

"While in the first six months of this year people were hesitant, we are now starting to see risk appetite increasing with borrowers more confident to take advantage of the market conditions," said Tanneguy de Carne, global head of high-yield capital markets at Societe Generale in London. "We’re telling sponsors and companies that now is the time to think about their financing plans.  

De Carne says this message is now also being directed at triple C plus issuers, "something we couldn’t say so clearly" in the first part of this year. "We’re also sensing that investors are a lot more willing to consider and invest in more aggressive deals, difficult credit and turnaround stories," he said. Double B-rated companies and refinancings continue to represent the bulk of issuance in the high-yield market this year.

"Investors are giving up the upside to many deals slowly as there is a greater need to put money to work," said Azhar Hussain, head of high-yield and leveraged loans team at Royal London Asset Management. "We’re mainly focused on the credit story rather than the terms and covenants, and on that basis we are cherry picking. But in many cases investors who can’t do this are being forced to buy almost everything right now."

 . . "

Read more > bloomberg.com

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Tom Cruise risky business dance from YouTube - he started a "home business"