Negative Credit Spreads Emerge in Europe as Investors Favor Corporate Bonds -- Market Talk
Dow Jones
Jul 18, 2025
1429 GMT - Some European corporate bonds have negative credit spreads as investors favor corporate bonds over government bonds, Bank of America credit strategists say in a note. "Investors are warming to credit because firms are deleveraging quicker than governments." This trend nonetheless presents risks of sharp corrections, they say. In the past decade, Spanish credit on average yielded less than Spanish sovereign bonds. However, when policy uncertainty increased, the corporate bond yields rose faster than government bond yields, the BofA strategists say. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
July 18, 2025 10:29 ET (14:29 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.