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2024/02/21 / Erste Group Research
Credit Markets Weekly

Hope of interest rate cuts drives credit spreads

Despite the persistently difficult market environment, positive sentiment currently prevails on the capital market. One important reason for this is probably the hope that the ECB will soon cut key interest rates. Nevertheless, significantly higher (re)financing costs should continue to weigh on companies and issuers' interest coverage ratios will remain under pressure in 2024.

Risk premiums on the corporate bond market recently reached a two-year low. The sentiment indicators (EZ Purchasing Managers' Index, ifo Business Climate Index for Germany), which are expected this week, are likely to provide impetus for the further development of spreads on the credit market.

Special topics of the week:

- EU tightens climate pathway to 2040: higher transition risks

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General information

AuthorErste Group Research
Date2024/02/21
Product typeweekly / bi-weekly
Product nameCredit News
Topic in focusCredits/ Corporate bonds
Languageen
Market cap-
AvailabilityAll [1]
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