Is eurozone finally entering a period of sustainable economic expansion?

clock • 2 min read

The first eight months of 2015 have been relatively weak for the global high yield market. Much of this weakness has stemmed from the US, where exposure to lower commodity prices has put pressure on issuers, in particular those in the basic materials sector.

While energy sector exposure in Europe is more limited, this weakness has transposed into the European high yield market. As a result of this, bond prices are lower year to date and credit spreads have reached their widest levels since mid-2013.   The European Central Bank (ECB) is in the early stages of its quantitative easing programme and the portfolio rebalancing effect is just one of the ways this policy may be transmitted into the real economy. This encourages investors to move capital into riskier and higher yielding assets as the yield on risk free assets is artificially supre...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

MainStreet Partners' Daniele Cat Berro: Europe's good intentions and poor execution

MainStreet Partners' Daniele Cat Berro: Europe's good intentions and poor execution

'Chronic slowness' undermining efforts

Daniele Cat Berro
clock 03 July 2025 • 4 min read
Eurozone inflation rises to 2% in June

Eurozone inflation rises to 2% in June

Up from 1.9% in May

Sorin Dojan
clock 01 July 2025 • 2 min read
Disinflation drives ECB rate cut but investors warn of limited space for further trims

Disinflation drives ECB rate cut but investors warn of limited space for further trims

25bps cut

Sorin Dojan
clock 05 June 2025 • 2 min read
Trustpilot