IN FOCUS6-8 min read
Schroders Credit Lens April 2026: your go-to guide to global credit markets
Credit spreads have risen is response to the Iran situation.
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Links to all three versions of the Credit Lens are provided below and at the bottom of the page.
Summary:
- Credit spreads have risen from the lows – this was underway before Iran – but remain tight vs history (slides 4-5).
- Ultimately, demand remains because current yields are attractive to many buyers, in isolation and vs cash (slide 6)
- As commodity net importers, European and Asian economies are more vulnerable to commodity price rises, while the US is better placed (slide 6)
- Consistent with this, EUR and GBP spreads increased by more than USD ones following the Russia/Ukraine 2022 oil price spike (slides 7-8)
- EUR spreads have also been widening by more than USD recently (slide 4)
- GBP and EUR corporate bond markets also have more exposure to real estate, which suffered badly in 2022. Conversely, the USD market has more exposure to the energy sector, which performed better (slide 10).
- Large amounts of IG issuance remains a theme. In the first quarter of 2026, the hyperscalers already nearly matched the record amount borrowed across 2025 overall (slides 10-11)
Chart of the month:
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