But there are signs in recent months that investor caution is beginning to thaw. Casino Guichard-Perrachon SA managed to boost the size of its latest debt offering even though chairman Jean-Charles Naouri placed its parent company under protection from creditors in May. Similarly, Teva Pharmaceutical Industries Ltd. upsized its bond to about $2.2 billion despite potential liabilities from lawsuits earlier in the year related to the U.S. opioid crisis.

That’s not to say that the risks are not high for junk bond investors in Europe next year, given historically low yields and the late stage of the cycle.

“We still think there will be a number of credits that will struggle next year and we continue to be laser focused on avoiding the losers,” Turner said.

This story was provided by Bloomberg News.

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