Europe Lockdowns Put $50 Billion of Bonds on Cusp of Junk Grade
- Euro bond risk premia above 1% first time in more than a year
- More pressure seen for weaker-rated bonds from risk volatility
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A new wave of junk downgrades looms over Europe as the region shudders under one of the worst outbreaks of the pandemic.
Some 84 bonds worth 46 billion euros ($52 billion) are on the cusp of losing their investment-grade ratings -- marking a reappearance for fallen angels that had all but vanished this year, according to Bloomberg Intelligence analysts.