Opportunities within European credit
Positioning and fixed income markets have remained quite tricky this year, however credit markets have continued to perform very strongly. TwentyFour Asset Management's Eoin Walsh, discusses why he thinks there is opportunity within European credit despite the rate headwinds and pull back on some of the aggressive rate cutting expectations markets had at the start of the year.
Key takeaways:
- Rate headwinds have persisted, requiring market participants to adjust their earlier expectations of aggressive rate cuts
- Strong performance in credit markets, particularly in Europe, have shown strong performance and offer attractive yields compared to US markets
- European high-yield sectors are providing higher yields compared to the US, with European high-yield bonds offering around 8%, UK just under 9%, and US around 7%
