![]() ![]() This led to a slight decline in risk premiums. The attractive risk premiums and the increased yield level attracted investors. ![]() Welcome back - demand for corporate bonds is risingĮuropean corporate bonds in the investment-grade segment have held up well since the beginning of the year. Overall, the segment has clearly gained in attractiveness and adequate current yields are again being offered in all three currency regions. In the Eurozone, we expect a total increase in the main refinancing rate to 4% by the summer, without a turnaround in the following months. The US Fed and the Bank of England should begin to lower their key interest rates again in the second half of the year after further hikes in the second quarter, but the European Central Bank will not. In addition to an easing in long-dated bonds, this also leads to a divergence in central-bank policies. ![]() Going forward, current yields should be the main source of return, with the fact that inflation in the US is on the retreat earlier than in the Eurozone playing a role. Although the recovery that started at the beginning of the year initially slowed down from the end of January, and yields subsequently climbed above the levels they were at the turn of the year, the trend reversed again. Government bonds provide yields again the US remains in the leadĪs expected, the losses of the previous year in the safe government bond segment did not continue during the first quarter. ![]()
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