Central Banks Contain Investment Grade Spreads

The recent Covid-19 crisis triggered an economic shock, whose magnitude only compares to the Great Financial Crisis (GFC) of 2008, as depicted by our Eurozone Growth Nowcaster.

However, European investment grade (IG) credit spreads did not widen nearly as much as during the GFC or even the subsequent European debt crisis of 2011, whose peaks were nearly double of the highs seen this year. Thanks to early, massive and broad based intervention, central banks managed to keep IG credit spreads at bay.

 

Central Banks Contain Investment Grade Spreads
Source: Bloomberg, Unigestion. Data as at 28 July 2020.

Important Information

The information and data presented in this page may discuss general market activity or industry trends but is not intended to be relied upon as a forecast, research or investment advice. It is not a financial promotion and represents no offer, solicitation or recommendation of any kind, to invest in the strategies or in the investment vehicles it refers to. Some of the investment strategies described or alluded to herein may be construed as high risk and not readily realisable investments, which may experience substantial and sudden losses including total loss of investment.

The investment views, economic and market opinions or analysis expressed in this page present Unigestion’s judgement as at the date of publication without regard to the date on which you may access the information. There is no guarantee that these views and opinions expressed will be correct nor do they purport to be a complete description of the securities, markets and developments referred to in it. All information provided here is subject to change without notice. To the extent that this page contains statements about the future, such statements are forward-looking and subject to a number of risks and uncertainties, including, but not limited to, the impact of competitive products, market acceptance risks and other risks.

Data and graphical information herein are for information only and may have been derived from third party sources. Although we believe that the information obtained from public and third party sources to be reliable, we have not independently verified it and we therefore cannot guarantee its accuracy or completeness. As a result, no representation or warranty, expressed or implied, is or will be made by Unigestion in this respect and no responsibility or liability is or will be accepted. Unless otherwise stated, source is Unigestion.

Past performance is not a guide to future performance. All investments contain risks, including total loss for the investor.


Thank you

We've sent an email to confirm your subscription