European credit outlook 2021 a world of uncertainty

10 min read 23 Feb 21

Summary: European credit markets appear to have stabilised, as investors increasingly price in a perfect economic recovery alongside continuing monetary and fiscal support.

However, the outlook for 2021 remains uncertain, with the expected recovery depending heavily on successful vaccine rollouts.

We believe strong fundamental credit research will be crucial to identifying mispricing opportunities and mitigating issuer-specific risks in the year ahead.

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The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.

By M&G Investments