Marie Vrakking

European bond markets are at a turning point, with rising sovereign yields, heightened government debt issuance, and ongoing market volatility shaping the landscape. At the same time, corporate default rates are climbing to levels unseen since 2008, adding pressure on credit markets. While the ECB has moved into a holding pattern following its mid-2024 rate cuts, questions remain about the durability of accommodative policy and the outlook for further easing. With liquidity conditions shifting and geopolitical risks looming, asset allocators must rethink fixed income strategies to balance risk, flexibility, and return in an increasingly uncertain environment.