Opportunities within European credit

Market Update
Watch 3 min

Positioning and fixed income markets have remained quite tricky this year, however credit markets have continued to perform very strongly. TwentyFour Asset Management's Eoin Walsh, discusses why he thinks there is opportunity within European credit despite the rate headwinds and pull back on some of the aggressive rate cutting expectations markets had at the start of the year.

 

Key takeaways: 

Fixed income market performance

  • Rate headwinds have persisted, requiring market participants to adjust their earlier expectations of aggressive rate cuts

Credit markets

  • Strong performance in credit markets, particularly in Europe, have shown strong performance and offer attractive yields compared to US markets

Relative value in European assets

  • European high-yield sectors are providing higher yields compared to the US, with European high-yield bonds offering around 8%, UK just under 9%, and US around 7%

 

 

 

About the author
About the author
Explore related topics:
Europe Fixed Income Market Update Multi-Sector Bonds
Most viewed:
Should investors care about negative swap spreads?Fixed Income 2025: Yields trump possibility of spread correctionFlash Fixed Income: Trump to reshape rate cuts in US and Europe
Up next:
Growth trends look encouraging for central banks – and investors

Blog updates

Stay up to date with our latest blogs and market insights delivered direct to your inbox.

Sign up 

image