Research Detail
| 2024/02/21 / Erste Group Research |
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
| Author | Erste Group Research |
| Date | 2024/02/21 |
| Language |  |
| Product name | Credit News |
| Topic in focus | Credits/ Corporate bonds |
| Economy in focus | Austria, Eurozone |
| Currency in focus | Euro |
| Sector in focus | - |
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