Search
 

Europe’s Riskiest Bonds Face Growing Default Threat

The U.S. junk market, by contrast, has a “largely manageable” volume of debt coming due in the next three years.

By Caleb Mutua | February 06, 2025 at 11:04 AM
City workers in the La Defense business district of Paris on June 18, 2024. Photographer: Nathan Laine/Bloomberg.

The riskiest slice of Europe’s high-yield corporate bond market faces a hazardous road ahead, cautions Goldman Sachs Group Inc.

Europe’s lowest-rated bonds are grappling with a raft of upcoming refinancings—more than 30 percent of the notional outstanding matures between now and the end of 2026—while at the same time the costs to refinance are steep. That, say bank credit strategists including Lotfi Karoui and Spencer Rogers, could lead to more defaults over the next year.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2025 ALM Global, LLC. All Rights Reserved.