Euro Strategy: Key Sector Risks for 2026
Logan Miller - Head of European Strategy, CreditSights
Winnie Cisar - Global Head of Strategy, CreditSights
Maryum Ali, CFA - Senior Analyst, Consumer Goods, CreditSights
Simon Adamson - Head of Financials, CreditSights
Andrew Belton - Head of Basics and Infrastructure, CreditSights
Paola Biraschi - Head of Southern European Banks, CreditSights
Mark Chapman, CFA - Head of Telecom/Media, Product Strategist, CreditSights
Bozhidar Dinkov - Analyst, Utilities, CreditSights
Feargus Haston - Analyst, Banks, CreditSights
Puja Karia - Head of Western European Banks, CreditSights
Anika Kiadhra - Analyst, Strategy, CreditSights
Alex Lawrence, CFA - Analyst, TMT, CreditSights
Andrew Moulder - Head of Utilities, CreditSights
Mariya Nurgaziyeva, CFA - Head of Consumer, CreditSights
Mary Pollock, CFA - Head of Real Estate, CreditSights
Jennifer Ray - Head of Northern European Banks, CreditSights
Helen Rodriguez - Head of European Special Situations, CreditSights
Amarveer Singh - Senior Analyst, Food Retail and Gaming, CreditSights
Mihir Trivedi - Analyst, Construction / Infrastructure, CreditSights
Jim Williamson - Senior Analyst, Autos, CreditSights
27 January 2026
- Which European sectors face the greatest vulnerability as markets price for perfection.
- How private credit exposure creates potential blow-up risks that aren’t currently being priced.
- Where market share battles and competitive dynamics could reshape traditional industry leaders.
- Why regulatory shifts and structural oversupply threaten margins across multiple value chains.
- Which credits offer defensive positioning when consumer spending and volumes falter significantly.
Executive Summary
European credit markets showed resilience despite significant geopolitical tensions across major regions. Strong technical factors overshadowed fundamental concerns that emerged in early trading.
Spreads remain compressed with limited room for further tightening ahead. Markets appear priced for perfection with multiple underlying vulnerabilities brewing beneath.
Multiple risks are surfacing across different sectors including margin pressure points. Moreover, relative value opportunities have narrowed significantly making differentiation increasingly difficult.
Sector-specific catalysts matter more than broad market trends for investment decisions. Therefore, credit research teams identified key vulnerabilities requiring closer monitoring throughout.
Portfolio positioning and geographic exposure could influence resilience when headwinds strengthen. These factors may reshape the credit landscape as conditions evolve further.
