The market backdrop in Europe remains familiar; low economic growth, low inflation, relatively low defaults and volatility with the odd spike. This environment is attractive for corporate bond investing.
Seasonals will soon start to kick in, helping credit markets to rally into Christmas and the early months of the new year. However, going forward bouts of volatility should be expected. This year alone there have been two volatility spikes; a 'valuation shakeout' in August and a 'position shakeout' in October. John Pattullo explains what lay behind each event.
