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Quarter-End Insights

Our Outlook for the Credit Markets

The European sovereign debt crisis flares anew, supporting our long-held investment thesis to favor corporate bonds of U.S. issuers over European issuers.

  • We have a neutral view on credit spreads predicated on rising systemic risk emanating from Europe
  • Increasing sovereign risk drives downgrades in the European banking sector.
  • Long-term interest rates have hit new lows.


David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.