Pernod Ricard, the world’s second largest spirits group, had investors clamouring to buy its bonds on Thursday in spite of its junk rating – an encouraging sign of an improvement in market sentiment.

Bond markets have seen record-breaking issuance this year, with companies raising bond market funding at an unprecedented pace. However, sub-investment – or junk-rated – borrowers have been left out in the cold in Europe, leading to concerns about their ability to find funding as banks cut back lending.