Marconi's debt has traded down to junk bond levels, but high yield investors say that they will not touch the company's bonds.
Marconi's 10-year euro bond, rated A3 by Moody's BBB+ by Standard & Poor's was quoted at 375 basis points over German government bonds. That is not far off the bonds of Kappa, the leveraged Dutch packaging group rated B2, whose bonds were quoted at 400bps over.
