European Leveraged Finance Survey: Macro Risks Outweigh Credit Concerns
The H1 2026 European leveraged finance survey by LCD indicates that while credit fundamentals are expected to remain stable, macroeconomic concerns dominate investor sentiment. The Morningstar European Leveraged Loan Index (ELLI) is forecasted to outperform its US counterpart in the second half of 2026 due to a shift away from AI-related risks and continued floating-rate advantages.
Topics: credit fundamentals high yield bonds leveraged loans macroeconomic risks