European High Yield and Loan Trading Picks and Pans

RBC Capital Markets provides its February 2026 outlook for European High Yield and Loans, highlighting top credit picks and names to avoid based on fundamental analysis and valuation.

Key Takeaways

• 1.RBC maintains a 'Picks' list focused on names with expected turnarounds (ASDA) or operational solidness (EVRi) that compensate for negative news flows.
• 2.Specific credits like Bertrand Franchise and Boots are flagged as 'Pans' due to high leverage, weak interest coverage, and French political/macro instability.
• 3.Primary issuance in the European High Yield market has slowed in February following a strong January, as issuers wait for full-year earnings results.

Table of Contents

• Overview HY Picks, Pans & Switches: Picks
• Overview HY Picks, Pans & Switches: Pans
• Overview HY Picks, Pans & Switches: Switches
• Overview HY Picks, Pans & Switches: Topical Situations in Focus
• What has changed (positions closed)
• Overview Of Current Active Loans
• Picks
• Pans
• Switches
• Topical Situations
• Appendix
• European High Yield Market Update
• European Leveraged Loan Market Update

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