MANAMA: European default rates will remain relatively elevated through 2021 and the over-reliance of European markets on central bank stimulus poses significant medium-term risks as the support is eventually reduced or removed, according to a new report.
The inaugural Investcorp ‘House View’ on the state of global credit markets says European leveraged loans have extended their nine-year record of positive annual returns in 2020 and are poised to benefit from several technical tailwinds, including a pronounced structural supply deficit, led by subdued primary issuance and continued new collateralised loan obligation (CLO) issuance .
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