Allianz Global Investors, AXA Investment Managers, and Janus Henderson Investors are among asset managers forming a group to push for better terms in a faltering European leveraged-finance market.

At least 10 money managers are setting up the European Leveraged Finance Alliance (ELFA) Investor Group to represent them in discussions with high-yield bond and leveraged-loan borrowers, according to its newly appointed spokeswoman Sabrina Fox. ELFA will also act as a public lobbying group and aims to expand to about 20 members in the next year, Fox says.

Investors are getting more assertive in the junk-debt market after they suffered the worst losses in a decade during 2018. At least 18 corporate borrowers pulled out of sales of new securities last year amid tougher bargaining from asset managers. In December, the new issuance market closed completely on both sides of the Atlantic for the first time in years.

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