Credit at a Crossroads: Finding Value in Europe’s Landscape
In today’s market environment, we believe European leveraged loans and high yield bonds present a compelling investment case.
Key takeaways
- As European credit markets have expanded, high yield bonds, leveraged loans and direct lending have emerged as potentially attractive opportunities for investors.
- We expect the ratings-adjusted returns between direct lending, high yield bonds and leverage loans will continue to converge, as seen during the last two years.
- European leveraged loans and high yield bonds provide potential diversification benefits and may be a compelling alternative to direct lending.
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