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Europe Faces Worst Corporate Credit Supply Squeeze Since 2005

  • ECB purchases, corporate cash hoarding trims available bonds
  • Reduced availability raises issues with corporate debt pricing
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The amount of corporate bonds investors can trade in Europe is shrinking for the first time since 2005.

Despite a rush in deals by high-grade non-financial firms, there’s effectively a 21 billion-euro ($25 billion) drop in the investable pool of euro bonds because of calls, buybacks, upcoming redemptions and European Central Bank debt purchases, according to Bloomberg calculations.