Europe Company Bonds Suffer Worst Peak-to-Trough Drop in History
- High-grade bonds have fallen a record 8.6% from latest peak
- Drop worse than selloffs during Covid and financial crisis
This article is for subscribers only.
Europe’s corporate bond market is officially going through its worst selloff in history.
A 2.6-trillion-euro ($2.8 trillion) gauge of total returns in euro-denominated high-grade debt is down 8.6% since a recent high in August. That’s the steepest peak-to-trough plunge on record, surpassing the slump at the start of the coronavirus pandemic and the global financial crisis more than a decade ago, according to Bloomberg’s index, which has a one-day lag.