Monthly European Loan Market Update - May 2019

Monthly insights and updates from the Invesco Fixed Income team

May 15, 2019 | Invesco Fixed Income

The Credit Suisse Western European Leveraged Loan Index (“CS WELLI”) returned +0.98% in April, comprised of principal return of +0.59% and interest return of +0.39%. Year-to-date returns are 3.02%.

April was, in general, a strong month for risk assets. ECB and US Federal Reserve policy continued to be supportive, trade developments incrementally inched towards a positive outcome, and continuing subdued volatility helped fuel risk asset returns. In particular, European Banks (as measured by the Euro Stoxx Banks Sector Index) returned +8% for the month, in stark contrast to German Bunds, which had a total return of -0.6% during April. 1Q Euro Area (“EA”) GDP numbers were better than expected at +0.4% (versus +0.3% expected) quarter-over-quarter (QoQ), aided by strong developments in Spain and France. The ECB will take some comfort from these numbers, but are likely to remain dovish on positioning.

To read more of IFI’s views, click on “Download PDF”.

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