FIXED INCOME
High quality credit looks the most attractive
Single A credit is cheap compared to default rates
Significant compression between A and BBB (bps)
Index spread percentile over 20 years
80
Europe IG
27%
60
40
Europe AA
36%
20
Europe A
31%
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Europe BBB
22%
Spread BBB-A 3-5 ans Corporates
Europe HY
21%
Significant compression between A and BBB (bps)
Europe BB
9%
Average default rate over 5y
Credit spread (bp)
AAA
0
44
Europe B
12%
AA
0.1
66
+0.05
+28 pb
Europe CCC
68%
A
0.15
94
+0.25
+27 pb
BBB
0.4
121
0%
20% 40% 60% 80% 100%
Public Sources : Rothschild & Co Asset Management, Bloomberg – 31/12/2024 This presentation contains historical market data. Historical market trends are not a reliable indicator of future market behavior. This data is provided for illustrative purposes only. Depending on the date of issue, the information presented may differ from the updated data
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