Companies did not wait for the first drop in key rates in the euro zone in five years to extend the maturity of their loans.
Investors wishing to take advantage of still high coupons, the offer met the demand of companies to the point that the volumes of highly rated debt (420 billion euros, including financials, since January 1 according to Société Générale, up 17 % year-on-year) are on track to beat their 2020 pandemic record.
The “healthy” real estate sector, automobiles and technology should be the first beneficiaries of the start of the easing cycle, estimates Bank of America. If we rely on history, this overactivity could continue up to nine months after the last drop, observes the bank. Which is only expected by BofA in July 2025.
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