European Credit Weekly：Warning lights are flashing

Europe Credit Research 02 August 2024 J P M O R G A N European Credit Weekly Warning lights are flashing • We are revising our FY24 euro investment grade and high yield spread targets upwards to 150bp and 425bp, respectively, implying 25bp and 58bp of widening from yesterday's levels. • In our view, the market is facing a potent cocktail of: i) divergence in spreads from rates markets and equity volatility; ii) weaker economic data; iii) more balanced technicals with risks to demand from lower yields; iv) g ...