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24/2/19: Eurozone’s Corporate Yields are not quite in a crisis territory… yet…

Summary:
Euro area high yield corporate credit rates are under pressure to continue moving: But they are far from being dramatic, even though banking sector margins have now surpassed ex-crises averages: The problem, however, is what awaits on the horizon. So far, the ECB is planning on hiking rates in the second half of 2019. If it does, with one 25 bps hikes to the end of 2019, we are looking at high yield rates jumping close to a 7 percent mark: That is a bit more testing than the current above-the-average yields.

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Euro area high yield corporate credit rates are under pressure to continue moving:

24/2/19: Eurozone's Corporate Yields are not quite in a crisis territory... yet...

But they are far from being dramatic, even though banking sector margins have now surpassed ex-crises averages:

24/2/19: Eurozone's Corporate Yields are not quite in a crisis territory... yet...

The problem, however, is what awaits on the horizon. So far, the ECB is planning on hiking rates in the second half of 2019. If it does, with one 25 bps hikes to the end of 2019, we are looking at high yield rates jumping close to a 7 percent mark:

24/2/19: Eurozone's Corporate Yields are not quite in a crisis territory... yet...

That is a bit more testing than the current above-the-average yields.

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