HSBC researcher sounds alarm on European credit

Treasury bull says investors no longer compensated for risks. Low volatility may give a false sense of security.
  • 31 Agosto 2017

European investment-grade bonds will become a world of pain if volatility rises from record lows because investors aren’t being compensated for liquidity, default and downgrade risks.

On top of those dangers, high debt burdens and aggressive valuations will conspire to crimp capital gains on European bonds this late in the global credit cycle.

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