European Bond Selloff Shows Global Credit Markets Have Turned Sour

The video discusses the challenges faced by global credit markets, focusing on the difficulties in the US and European high yield bond markets. European bonds have struggled more, with significant losses and low demand. Contingent capital bonds are also facing their first annual loss, highlighting their riskiness. Concerns about banks, such as Deutsche Bank, are rising due to potential equity needs and disappointing results, indicating broader credit weaknesses, especially in Europe.

What has been the performance of US high yield bonds compared to European high yield bonds this year?

What does the lack of demand for new bonds in Europe indicate?

What are the risks associated with contingent capital bonds?

How have concerns about Deutsche Bank affected the market?

What signs indicate that the credit market in Europe is weaker than in the US?