- After years of supporting corporate credit, the European Central Bank and Bank of England are set to reverse course, just as global growth begins to slow.
- While the loss of support will be felt in both markets, the differences in program structure and portfolio composition will have distinct impacts.
- One possible area of opportunity for investors is the banking sector: Neither the BoE nor ECB included banks in their purchase programs, and as a result the sector has traded at a discount to corporate peers.
For further details see:
End Of An (QE) Era For EUR And GBP Corporate Bonds