Issuance volume rises sharply
Credit Markets Weekly , 21. Mai
Since the rapprochement in the customs dispute, risk premiums on corporate bonds have narrowed significantly. The consensus expectation that European companies' debt repayment periods will decline by the end of 2025 supports this development. The momentum of spread narrowing slowed in the previous week. This was probably also due to the recent boom in primary market issuance. For a lasting decline in spread volatility, it would be important for the trade dispute between the EU and the US to be successfully resolved before the 90-day deadline expires on July 9.