ECB meeting will provide short-term impetus
Credit Markets Weekly , 4. Jun
The new US import tariffs on steel and aluminum came into effect on April 4, 2025, and have been increased from 25% to 50% until further notice. Investors are eagerly awaiting the talks between US President Donald Trump and Chinese President Xi Jinping, which are likely to take place this week.
Credit spreads continued to narrow and are now back to their levels at the beginning of the year. On average, corporate credit profiles remained stable in both the IG and HY segments in Q1 2025. Interest coverage on an EBITDA basis remained stable at a good level in the first quarter. In the HY segment, it even improved slightly (Q/Q).
The decline in inflation in the eurozone to 1.9% in May suggests that the ECB will cut interest rates further.
Special topics of the week:
- Issuer in focus: SID Bank
Credit spreads continued to narrow and are now back to their levels at the beginning of the year. On average, corporate credit profiles remained stable in both the IG and HY segments in Q1 2025. Interest coverage on an EBITDA basis remained stable at a good level in the first quarter. In the HY segment, it even improved slightly (Q/Q).
The decline in inflation in the eurozone to 1.9% in May suggests that the ECB will cut interest rates further.
Special topics of the week:
- Issuer in focus: SID Bank