Euro overthrows dollar in corporate bond sales
Although the dollar continues to dominate the debt markets, the euro has since the beginning of the year dethroned the US currency as the most popular currency in corporate finance.
According to Bloomberg data, companies borrowed 98 billion euros ($107 billion) in January, and 101 billion dollars in dollars.
The return in the euro gained momentum with the confidence in the European economy and the increase in energy security. The currency, which was introduced in 1999, fell to the level of 1 against the dollar after developments such as the political chaos experienced in Italy last year, Russia’s invasion of Ukraine and the course of monetary policy. under had regressed.
“The market was more worried about Europe than the United States. As the energy crisis over the winter was less severe than expected, concerns eased and euro credit became more attractive,” said JPMorgan’s Matthias Reschke.
The European Central Bank decided to raise 50 basis points after its meeting on Thursday. After this move, pricing was observed in credit indicators suggesting that the ECB will slow down after March.
