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We lower our yield forecasts across EUR, UK, AU & JP, and discuss each market’s additional idiosyncratic drivers.
In an unstable market, it can be futile to search for catalysts behind every shock. Instead, last week’s risk asset selloff validated our calls that fragility risks were rising.
Sell-side analysts expect year-on-year Q2 EPS growth of 188%, having revised up their Q2 EPS estimates by 23% since July.
Flows into the IG funds space have accelerated over the past couple of weeks. As we have highlighted in the past, a low rates vol environment is supportive for credit spreads and fund flows into the sector.
Higher inflation uncertainty, but low rates vol has been pivotal in supporting flows into short-term IG funds.
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