Euro High-Yield Credit Shrugs Off Slow Vaccine Rollout — Market Talk
2021-03-22 14:32:19.622 GMT
(Dow Jones) — 1432 GMT – European high-yield corporate bonds have so far
brushed off the slow vaccine rollout in Europe, says Spread Research, which
has been exacerbated by some countries pausing the administration of the
AstraZeneca jab on concerns over possible side effects. « Political nervousness
related to the AstraZeneca vaccine being halted in most continental European
countries is likely to delay the bloc’s economic recovery, » the independent
credit research firm says. However, the euro high-yield credit markets have
been broadly insensitive to this, » with spreads neither widening or
tightening, it says. The Euro high-yield market has remained stuck with
flattish spreads at 368 basis points versus the benchmark government debt and
zero returns, leaving the year-to-date total return at 1.6%, it says.