Key Takeaways
- The euro corporate bond market has been on the rise since the beginning of the year, despite the vulnerable environment.
- Investment flows into corporate issues, solid balance sheets, and stable interest rates are making managers optimistic, but valuations are high.
- Among the largest active funds, some are taking a more cautious approach, while others are making strategic use of coupon income.
The bond market started 2026 with tight spreads between risk-free securities and corporate bonds, in an environment made perilous by rising public deficits, geopolitical tensions and new offerings to finance investments in artificial intelligence.
Eurozone corporate bonds got off to a good start, rising 1.2% since the beginning of the year. This continues the positive trend of the past 12 months, which saw a 3.2% increase in the Morningstar Eurozone Corporate Bond Index, compared to…
