What Euro Crisis? Investor Demand Drives Debt Sales to Records
With both sovereigns and corporates, it’s a target-rich environment for bond funds.
French President Emmanuel Macron’s political project may be in the toilet, but the bond market is doing fine.
Photographer: PAT BATARD/AFPThe record amount of €1.71 trillion ($1.81 trillion) European syndicated new debt sold in 2024 opens up the strong likelihood that the new year will see even greater volumes. It's quite staggering that the pandemic years of 2020 and 2021, when interest rates were super low and debt conditions couldn't have been more favorable, have lost their crown so swiftly.
Debt capital markets are in rude health, shrugging off broadly higher interest rates and sovereign yields as well as lackluster economies. Political turmoil in France and Germany — not to mention Trump 2.0 — may cause some hiccups, but higher inflation and interest rates keep driving up the sales numbers.