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EMEA Morning Briefing: Shares to Fall, Commodities Weaken as Focus Turns to Fed

EMEA Morning Briefing: Shares to Fall, Commodities Weaken as Focus Turns to Fed
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Inflation Risk Sinks 80% of Europe's Company Debt Sold This Year


Tasos Vossos, Bloomberg News
Skyscrapers in the skyline of the City of London, U.K., on Monday, March 8, 2021. Values in the U.K. capital should jump about 25% over the next five years, outpacing other European capitals, according to DWS researchers. Photographer: Jason Alden/Bloomberg
, Bloomberg
(Bloomberg) Buyers of newly-minted corporate bonds are already nursing losses as inflation fears send government bond yields climbing.
About four fifths of high-grade non-financial corporate bonds priced in Europe this year are quoted below their issue price, based on data compiled by Bloomberg. Last Friday, the share of post-issue losers stood at under 50%.
This bleak statistic underscores the damaging effect on credit investors of the so-called reflation trade bets on rapid economic recovery and an associated pickup in inflation prompting many to seek shelter from further sovereign debt sell-offs. ....

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