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Junior bond sales surge to record in chase for yield

Surge in new deals this year comes as yields on higher-ranked corporate debt sink to fresh lows

German carmaker Volkswagen issued a hybrid bond in March (Getty Images)
German carmaker Volkswagen issued a hybrid bond in March (Getty Images)

Rampant investor appetite for higher yielding debt is enabling European firms to sell junior bonds at the fastest pace on record.

Companies including French oil and gas company Total and German carmaker Volkswagen have sold almost €20 billion of junior or hybrid bonds so far this year, roughly 50% more than at this point 12 months ago, the previous record high, according to data provider Dealogic.

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