The high-yield bond market in Europe is moving closer to its U.S. counterpart as it becomes increasingly important for companies that are rated below investment grade. In the past five months, more than €8 billion worth of high-yield bonds have been issued in Europe. The market had been frozen since summer 2007. Industry observers expect companies to continue issuing high-yield bonds as a way of funding themselves while bank lending remains tight. Gilbey Strub, managing director of trade body European High Yield Association, said "rediscovery of the public capital markets" is similar to the early stages of the U.S. high-yield market in the 1980s.
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