Alstom Cuts Outlook as Shares Fall 25% and Hybrid Debt Yields Spike
Alstom cut its outlook, sending its shares down 25%, while yields on its low-ranking debt spiked. Its operational struggles highlight risks in the hybrid debt market.
By Neil UnmackThe €7 bln rail manufacturer’s shares fell 25% as it cut its outlook, and yields on its low-ranking debt spiked. Hybrid debt issuance boomed as investors chased returns and issuers looked to prop up ratings. Alstom’s operational struggles exemplify how this can go awry for both.Full v…