Attractive Breakeven Cushion in European High Yield

The European High Yield index delivered a month-to-date return in EUR of +1.3% in May.

The sector continues to offer an attractive medium- and long-term opportunity.

  • Default rates are expected to remain low.
  • The current carry of 201 basis points acts as a buffer against potential increases in yields.

Read in-depth insights in our Fixed Income Credit Markets – June 2025