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European junk bond sales hit record as investors cut US exposure

June issuance of about €23bn beats previous high four years ago as companies take advantage of lower borrowing costs

Sales of risky European corporate debt surged to their highest ever level in June, as lowly rated companies take advantage of a capital flight out of US markets on fears over the fallout from President Donald Trump’s trade tariffs.

Issuance by high-yield, or junk-rated, companies — many of which have previously struggled to access the market — rose to about €23bn in June, according to JPMorgan data. That beats the previous monthly record, set in June 2021, by roughly €5bn.

June also saw the greatest number of deals on record at 44, according to PitchBook data.

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