Deutsche Bank strategists say European corporate bonds face increased vulnerability to “aftershocks” from the war in Iran. The firm expects credit spreads to widen by year end for both investment-grade and high-yield (junk) corporate debt issued in Europe. Bloomberg and the Financial Post both report that Deutsche Bank’s view extends across the credit spectrum, implying that higher risk premia may be demanded by investors as geopolitical tensions affect market conditions. The reporting also characterizes the impact as indirect, framing it as a market risk effect rather than a specific default or issuer-level event. In contrast, Deutsche Bank favors the United States for corporate bonds relative to Europe, suggesting investors may find comparatively better risk-adjusted conditions in U.S. credit markets if European spreads continue to broaden. Overall, the outlets present the recommendation as a portfolio positioning shift tied to expected widening in European corporate bond spreads by the end of the year, driven by uncertainty stemming from Iran-related developments.
Deutsche Bank says Iran war risks widening European corporate bond spreads
Deutsche Bank strategists say European corporate bonds face increased vulnerability to “aftershocks” from the war in Iran. The firm expects credit spreads to widen by year end for both investment-grad...
- Deutsche Bank says European corporate bonds are vulnerable to Iran-war aftershocks.
- The firm expects credit spreads to widen in Europe by year end.
- Widening is expected for both investment-grade and high-yield corporate bonds.
- Deutsche Bank favors U.S. corporate bonds over European corporate bonds.
- The expectation is based on market risk conditions linked to geopolitical developments.
European corporate bonds are vulnerable to the aftershocks of the war in Iran, with spreads for both investment grade and junk bonds expected to widen by year end, according to strategists at Deutsche Bank AG.
2 months agoEuropean corporate bonds are vulnerable to the aftershocks of the war in Iran, with spreads for both investment grade and junk bonds expected to widen by year end, according to strategists at Deutsche Bank AG.
2 months ago
All eyes on Fed Chair Kevin Warsh’s first Jackson Hole speech
Federal Reserve Chair Kevin Warsh is set to deliver his first speech at the Jackson Hole economic symposium in Wyoming,...
Fed Chair Warsh says inflation is not slowing and pledges to reach 2% target
Federal Reserve senior official Kevin Warsh says inflation is not meaningfully slowing and warns that the central bank m...
Cambodia shuts more than 700 cyberscam locations, government says
Cambodia shuts down more than 700 locations involved in cyberscams, the government says, as part of efforts to target on...