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Gas Crisis Trumps ECB on Path Toward Europe Inc Funding Revival

  • 50bps rate hike may not ease inflation woes, revive bond deals
  • Outlook for gas supply seen holding the key to sales rebound
Updated on

The risk of a prolonged gas-supply crunch could unleash a drought in Europe’s credit market that a bigger-than-expected European Central Bank hike won’t fix.

That’s the concern among participants trying to do business in a market largely on pause amid widespread volatility and seasonal earnings blackouts. Sales across the region’s primary debt market are running more than 20% behind last year, while just a handful of non-financial companies are raising new debt as funding costs climb.