BlackRock: We See Downside Risks For European Bonds But Upside For European Stocks On Stronger Economic Growth
April 06, 2017 at 01:45 AM EDT
We are downgrading European sovereign bonds and credit to underweight as Q2 begins as they do not reflect the region’s better growth. Eurozone credit spreads have compressed well below those of U.S. peers. The result: Eurozone bonds seem pricey.