Low Interest in High Yield

Despite the fact that shipping issues continue to offer investors significant trading and yield opportunities, investor interest in the sector has waned in recent months.

One reason for the lack of interest may be the fact that many distressed players jumped in too early, got skinned and are steering clear of the sector. Many of the most logical buyers of these bonds have already bought and are kicking and scratching just to get out whole.

At the same time, the shrinking universe of existing deals, and lack of promise for future deals and underwriting fees, have caused many analysts to pick up coverage on other, more active sectors. There is also the fact that Chase, AMA, Poseidon and Deutsche seem to have locked up the workout business between them. As noted elsewhere in this issue, Tom Mazarakis became the latest shipping analyst to leave the sector when he joined Goldman Sachs in London.

This is only an excerpt of Low Interest in High Yield

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