TY - JOUR T1 - Pricing European High-Yield New Issues JF - The Journal of Fixed Income SP - 35 LP - 42 DO - 10.3905/jfi.2000.319252 VL - 9 IS - 4 AU - M. Christopher Garman Y1 - 2000/03/31 UR - https://pm-research.com/content/9/4/35.abstract N2 - European high-yield bonds are unique, and the dynamics of the European speculative-grade market are different from those in the United States. By looking at the influences that affect high-yield new issue pricing in this market, the author intends to clarify these differences. His study of two and a half years of recent new issues examines both company-specific and environmental factors. A significant amount of the variance in the new issue pricing can be quantified by four factors: the bond's average normal credit rating; the prevailing secondary market yield spread of European high-yield bonds; the principal size of the offering; whether the bond is deferred-interest coupon. The remaining variance is attributable to less quantifiable factors that are more under an underwriter's control. ER -