Euro High Yield May Be Most at Risk From a Fed Hike: Analysis

Unlike U.S. credit markets, which have recently moved to reflect probability of the U.S. Federal Reserve raising rates at its December meeting, the European high-yield credit remains anchored by dovish European Central Bank policy expectations. This discrepancy may now put European high yield debt at risk of a selloff should the Fed deliver a rate rise next month and if the ECB falls short of investors' dovish expectations, Bloomberg strategist Simon Ballard writes.

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