, Columnist
European Credit Is Poised for a Renaissance
Second-half rebound in corporate debt sales is likely as market turbulence ebbs.
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After the worst first half in memory for European credit markets, the ship has steadied.
The euro-aggregate index rose 4% in July, its best month ever. That reversed a similar-sized loss in June, which punctuated a 13% drop in the first six months for supposedly safe investment-grade bonds. In the midst of high summer, as is to be expected, there are only a handful of new corporate bonds being sold, but all the signs point to activity roaring back as vacation season ends. There is certainly plenty of slack after a record 33 days of zero issuance this year.