ECB reignites Double B mania

摘要

European bond investors poured billions of euros into Double B rated new issues last week, sparking concerns that the European Central Bank's recently-announced stimulus measures are also overheating demand for sub-investment grade credit. The ECB does not begin its purchase programme of investment-grade corporate bonds until June, but spreads in the asset class have ground tighter in anticipation of the central bank buying. This has put pressure on investors to look further down the credit spectrum in search of yield. Investors with high-grade corporate bond mandates have grown increasingly flexible in recent years, with larger buckets to hold Double B rated bonds.