A spell of sharp market volatility in May has not knocked European junk bond sales off their stride, with the pace of issuance remaining on track for another record this year.

Ultra-low interest rates in Europe have allowed risky borrowers to load up on cheap debt, and companies whose credit ratings sit below investment grade have issued around €35 billion of euro-denominated bonds so far this year - around €2 billion more than at the same point last year. It is the third year in a row that volumes at this point have been running at record levels, according to data provider Dealogic.