markets1 hour ago
European Junk Bond Market Hits Widest Credit Split Since 2009
European high-yield bond markets are experiencing the widest dispersion between top-tier and distressed credits since the 2008 financial crisis. This divergence is driven by rising interest rates, AI-related capital expenditures, and energy costs, which are straining weaker balance sheets. While safer double-B securities remain in high demand, triple-C and lower-rated issuers face steep price declines and stalled refinancing deals. Investors are increasingly selective, favoring strong credits while avoiding highly leveraged telecom, real estate, and AI-adjacent borrowers.