High-Yield Debt Market Momentum to Roll Into 2021

  • Effective roll-out of the vaccine should support recovery
  • Withdrawal of stimulus seen as potential risk in late 2021
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An uptick in M&A activity, alongside an economic recovery, as well as fiscal and monetary stimulus should keep the European sub-investment grade market running hot in 2021.

The arrival of Covid-19 vaccines has boosted investor confidence, and helped support the rally in bonds of companies still battered by lockdowns. An effective roll-out of the vaccine -- as well as a surge in M&A -- should clarify which firms survive next year.