Credit spreads down

European investment grade credit spreads over German government bonds have fallen from 1.36% to 1.15% this year (ICE BofA).

On investor optimism

Investors are more optimistic on the Eurozone economy – as they become less worried of a recession.

Opportunity for issuers

This could be a good opportunity for issuers to secure their upcoming funding needs: getting ahead of any potential change of sentiment that sends yields higher.