Big Investors Lose Faith in Europe's ECB-Fuelled Junk Rally

  • Deutsche AM reduces holdings in multi-asset portfolios
  • Yields are no longer compensating for risks: JPMorgan

JPM's Juvyns Says Best Is Yet to Come for Europe

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Some of Europe’s biggest money managers are getting ready for a turnaround in the two-year bull run of the continent’s riskiest corporate debt.

Deutsche Asset Management has reduced holdings of European junk bonds in its 100 billion euro ($106 billion) multi-asset portfolios and JPMorgan Asset Management says investors should brace for a tough second half. BlackRock Inc. says risks for European credit are tilted to the downside and Nataxis SA recommends dialing back high-yield debt exposure.