Europe Lockdowns Put $50 Billion of Bonds on Cusp of Junk Grade

europe lockdowns put 50 billion of bonds on cusp of junk grade

Sumary of Europe Lockdowns Put $50 Billion of Bonds on Cusp of Junk Grade:

  • Breadcrumb Trail Links PMN Business Author of the article: Bloomberg News Lyubov Pronina Publishing date: Nov 25, 2021 • 13 minutes ago • 2 minute read • Join the conversation Article content (Bloomberg) — A new wave of junk downgrades looms over Europe as the region shudders under one of the worst outbreaks of the pandemic.
  • Some 84 bonds worth 46 billion euros ($52 billion) are on the cusp of losing their investment-grade ratings — marking a reappearance for fallen angels that had all but vanished this year, according to Bloomberg Intelligence analysts.
  • “With European lockdowns back on, fallen angels are a worry,” Mahesh Bhimalingam and Bhumika Gupta wrote in research published Thursday.
  • There was just one fallen-angel downgrade in Europe in the past six months, they wrote.
  • The risk premium in euro-denominated corporate bonds, as measured by Bloomberg indexes, just rose above 1% for the first time in more than a year.
  • Spreads Turn Into Important Factor Again for European Credit “The fourth Corona wave is not leaving the credit markets unscathed,” Erste Group analyst Elena Statelov wrote in a note Thursday.

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