Report Shows 29% Of European High Yield Bonds In Default
The European high yield market produced a default rate of 20.9% on default volume of $12 billion in the first six months of 2002, according to Fitch Ratings. Both the number of defaulted issuers and default volume topped full year 2001 levels. In the six month period, 19 issuers defaulted on their bond obligations compared to 18 for all of 2001. Further, the large size of defaults in the first half, including Netia Holdings, United Pan Europe Communications, Energis, and NTL Communications, pushed default volume to triple the level recorded in 2001 of $4.2 billion. The default rate of 20.9% compares to a six month U.S. high yield default rate of 9.5% on default volume of $57.3 billion.