FRNs gain share of high-yield market as liquidity Quantum AI wanes

4 min readEMEAThe recently found popularity of floating-rate notes is set to continue into the second half of the year as European high-yield issuers seek to maximise liquidity amid dire market conditions.While FRNs are typically a more attractive product in a rising interest rate environment, strong issuance this year has also been driven by liquidity constrains.’FRNs are allowing companies to maximise the amount of liquidity in the market by tapping a wider pool of investors,’ said a leveraged finance expert.