Against this background, the European corporate bond market in 2017 is expected to be relatively stable, and it is expected to benefit from three major advantages: strong policy support, investor demand for bond purchases higher than bond supply, and European corporate borrowing is conservative.

ECB supports policy

The European Central Bank (ECB) maintained its determination to maintain a low interest rate environment and continued its quantitative easing bond-buying program. While the monthly size of purchases of Nepal Phone Number Treasuries, cover bonds and corporate bonds  reduc slightly in April, bond purchases  extend by nine months and will not end until December 2017 at the earliest.In addition, in order to solve the technical problem  there is no debt to buy, the European Central Bank has begun to buy short-term government bonds, and it also admitted that it does not rule out the possibility of buying negative-yielding bonds. In other words. The European bond market is still support by quantitative eas policies in 2017, and the euro zone bond prices are support by the downside, which will help stabilize bond yields.

Limited supply of bonds

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The supply and demand situation in the European bond market also continued to develop positively. The main source of financing for euro zone companies is still bank loans, while US companies mainly issue bonds. Although the issuance of European corporate bonds continues to grow, market demand also rises. The main reason is that bond yields are getting lower and lower, and bond investors are looking for assets with higher yields. Therefore, the purchase of corporate bonds continues to exceed supply, which is conducive to Bond issuers and bond prices.Compared with the uncertain outlook of other major bond markets, the ECB’s policy has provided a high level of support, helping to stabilize investment sentiment when the political situation changes.AllianceBernstein believes that the European Central Bank’s clear bailout mentality, buoyant investment demand and conservative corporate borrowing will bring clear positives to European corporate bonds in 2017, when there are still many variables.

 

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