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Several high-yield chemical assets have experienced a sharp decline in bond prices this year, leading to a spike in their yields to maturity. Some of them have slid into distressed territory, prompting proactive measures and increased engagement with shareholders.

Threatened by strong economic headwinds, unprecedented market challenges, and a hostile trade environment, the European chemical industry is at a crossroads.

The escalating conflict in the Middle East, marked by the recent Israeli attacks on Iran, has further driven up the already high cost of energy, intensifying the pressure on energy intensive sectors like chemicals.

Europe’s chemical industry, burdened by outdated infrastructure, liquidity constraints, and rising structural costs, is now facing an urgent need for capital to overcome these challenges and become more resilient.