Euro Rising Stars, BBs and Crossover Picks

Summary

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The recent steepening of the rates’ curves on both sides of the Atlantic justifies our long-held preference for credit risk over duration. In Europe, we continue to prefer BBs over largely negatively yielding BBBs. We discuss this in more detail whilst presenting our top picks across index eligible paper as well as looking further afield to GBP denominated bonds, corporate hybrids and sub-financials.