Europe’s Junk Bonds Hit Record as Shelter From Inflation Risk

Ferocious demand for junk-rated bonds from fund managers desperate to offset falling yields has paved the way for companies to sell debt at the fastest pace on record in Europe this year.

High-yield borrowers are on target to sell around 52 billion euros ($62.9 billion) by the end of April, surpassing the last year-to-date record by roughly 10 billion euros, Bloomberg data show.

The appeal of the junk bond market extends further than offering higher yields relative to other asset classes. Expectations of rising government bond yields, triggered by an uptick in inflation forecasts, is seeing investors favor the typically ...