European IG credit trade sizes stay compressed despite spread normalisation
Updated
Updated · The DESK · May 7
European IG credit trade sizes stay compressed despite spread normalisation
14 articles · Updated · The DESK · May 7
MarketAxess data show euro investment-grade bonds remained squeezed through late April 2026 after late-March stress from the Iran war and oil blockade.
Bid-ask spreads broadly retraced, but transaction depth did not, suggesting dealers and investors in Europe were still cutting trade-size risk even as headline liquidity indicators improved.
The report says US credit, including high yield, normalised more smoothly, highlighting Europe’s greater sensitivity as an oil importer and the need for pre-trade data beyond spreads alone.
As stagflation fears grip Europe, are its fragile credit markets signaling a deeper economic crisis ahead?
With US markets proving superior in crises, is the transatlantic gap in financial power now irreversible?
The US market appears resilient, but is the booming private credit sector a hidden time bomb for the global financial system?