IG buyers demand bigger risk premia as Harley tests boundary

By Mike Turner
14 May 2020

Europe’s high-grade corporate bond market this week proved that even the sectors hit the hardest by the pandemic can access funding. But investors are demanding compensation for the extra risk, and that premium is only expected to grow as motorcycle firm Harley-Davidson discovered when it tested the new wides, writes Mike Turner.

Spreads in Europe’s high grade market have been grinding tighter thanks to the European Central Bank’s two corporate bond buying initiatives — the Corporate Sector Purchase Programme (CSPP) and the Pandemic Emergency Purchase Programme (Pepp).

This has escalated in the last week, after it emerged that the central ...

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