September saw €10.5bn of high yield bonds supplied to the market, driven by corporate refinancings, which are responsible for about 60 per cent of issuances so far this year.
The third quarter was also the second highest on record for issuances, with €18.6bn issued, up from the €17.1bn in the first quarter, according to JP Morgan.
Co-head of Hermes Credit Mitch Reznick said the expectation of tapering from the Fed, albeit delayed, had contributed to the rise. “That was a catalyst and added urgency to issuance,” he said.
Renewed interest in issuances from peripheral Europe, from companies like Italian car-making giant Fiat, has also helped drive market volumes.
The proportion of debt coming from the periphery stands at 24 per cent for September versus 12 per cent in 2009.