Investment Grade Corporate Bond Roundtable (April 2024)

Europe’s investment grade corporate bond market has been remarkably resilient in the face of interest rate hikes, tougher economic conditions and rising default rates. In 2024, the strength and length of its bull run has astonished forecasters.

But corporate bond issuers know that rough markets can always be lurking round the corner and they have to be prepared. In March GlobalCapital brought together five leading participants in the market, representing issuers, investors and investment banks, to share their thoughts on how long the rally can last, and what will happen to spreads when the turn in the interest rate cycle finally arrives.

Investors need to be selective, since when conditions worsen, the recent across-the-board spread performance will be broken. Issuers are advised to roadshow thoroughly, away from deal execution, and broaden their funding to new markets — even if they cannot achieve arbitrage.

The group also discussed the likely impact of the US election, the value or otherwise of artificial intelligence, the influence of environmental, social and governance issues, and how the market values green and sustainability-linked bonds.