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Marcus Ashworth

Bad News for European Corporate Bonds

A difficult time to raise money.

That has been a tough lead-up to Halloween for long ends of major sovereign bond markets in Europe. The fallout in the corporate bond market is on its way -- and the window for issuing new debt could soon close. 

The current government bond rout seemed pegged to the surprisingly strong U.K. growth data published Thursday. The Bank of England was the great cheerleader for one last round of pump-priming, and now that's no longer needed. So much for central bank bond purchases. The change in sentiment hasn't shown up at a broad level in the European credit market, but it should.