Soaring Credit Risk May Be Canary in Coal Mine for European Assets
- Risk in credit market jumps on ECB as stock volatility muted
- Money flows out of high-yield funds and into equity ones
This article is for subscribers only.
Surging risk in the European credit market is signaling tough times ahead, clashing with a calmer scene in equities.
Measures of risk have soared for both investment-grade and high-yield borrowers after the European Central Bank’s unexpectedly hawkish tilt last week, even as a gauge of euro-area stock volatility has stayed below earlier peaks.