PT - JOURNAL ARTICLE AU - M. Christopher Garman TI - Pricing European High-Yield New Issues AID - 10.3905/jfi.2000.319252 DP - 2000 Mar 31 TA - The Journal of Fixed Income PG - 35--42 VI - 9 IP - 4 4099 - https://pm-research.com/content/9/4/35.short 4100 - https://pm-research.com/content/9/4/35.full AB - 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.