Look for:

Our offer for

Research Detail

2021/09/16 / Erste Group Research

High Yield credit metrics improving

As expected, the announcement of the ECB to slightly reduce the volume of bond purchases as part of the PEPP did not trigger any widening of spreads. In fact, in the high-yield segment, spreads even narrowed. In the corporate bond segment, the monthly purchase programme based on the PEPP (most recently about EUR 1.3bn per month) is already clearly below the CSPP specs (about EUR 4bn in August). The latter one continues without changes. Until the December meeting at the very least, the ECB should not be the source of any significant impulses for the credit market.

After the end of the reporting season we can see, as expected, that the interest coverage ratio and debt payoff period have improved further in the high-yield rating categories BB and B in Q2. The cyclical sectors recorded the most significant improvements; this is where the economic recovery was reflected the most noticeably. The weakest rating category, i.e. the CCC segment, was the only one where credit metrics deteriorated.

Special topic:

Issuer in focus: ASFINAG

PDF Download Download PDF (377kB)

General information

AuthorErste Group Research
Product nameCredit News
Topic in focusCredits/ Corporate bonds
Economy in focusAustria, Eurozone
Currency in focusEuro
Sector in focus-


We use cookies and web analysis software to give you the best possible experience on our website. If you consent, these tools will be used. For more details please read our Data protection policy.


Any information, material and services regarding financial instruments and securities provided by Česká spořitelna/Erste Group/ or any of its affiliates (collectively “Erste Group“) on this and any linked website hereafter (jointly the “Websites“) shall be exclusively to investors who are not subject to any legal sale or purchase restrictions.

By agreeing to this hereto, the visitor entering this Websites confirms that has read, understood and accepted this Information and the Disclaimer