Euro Credit Spreads Expected to Remain Stable

Dow Jones
Aug 17

1330 GMT - Euro credit spreads are likely to stay fairly stable due to strong investor demand, healthy corporate financial positions and resilient growth in the eurozone, Metzler Capital Markets' Stoyan Toshev says in a note. Credit spreads have stayed relatively steady despite volatility in stock markets and sovereign yields amid the Middle East conflict. However, a possible escalation in the U.S.-Iran war, weaker corporate earnings, or a sharp economic downturn could cause euro credit spreads to widen, he says.

 

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