DBEU - An Opportunity In European Credit
European corporate bonds sold off late last year amid a broad risk-off environment. Most risk assets have recovered since. One of the surprising exceptions: BBB-rated European debt. We now see compelling relative value in this segment of the European credit market, though we maintain our neutral view of the asset class overall.
Chart of the week
Difference in European corporate bond yields, 2014-2019
Past performance is not a reliable indicator of current or future results. It is not possible to invest directly in an index.
Sources: BlackRock Investment Institute, with data from Bloomberg and J.P.