Deals
Risks Ignored in Europe as Bond Buying Distorts Markets
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Investors are distinguishing less and less between weaker and stronger companies as unprecedented stimulus warps Europe’s credit markets.
The difference in yield premiums for borrowers rated AA and those rated six levels lower at BBB fell by about a third this year to 61 basis points, according to Bank of America Merrill Lynch indexes. That’s within two basis points of the smallest gap since January 2008, which was reached last week.