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Feb 18
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$89.53
$89.53
-0.0%
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WATCH
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Benzinga
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A major US corporation, Verizon, is choosing to issue debt in Europe specifically because credit spreads are near record lows. Extremely tight credit spreads are a strong indicator of a healthy and liquid corporate financing environment in Europe. This implies lower borrowing costs for all European companies, which can support earnings, and reflects strong investor confidence in the region's economic stability. The condition that attracted Verizon to Europe is a bullish macro data point for European equities as a whole. The Vanguard FTSE European ETF (VGK) is a direct proxy for this market. This news supports a constructive view on European stocks, warranting a "WATCH" for a potential entry point. Low credit spreads could be a function of central bank policy (ECB intervention) rather than pure economic strength, and a policy shift could cause spreads to widen rapidly. Geopolitical events or a slowdown in global growth could negatively impact European equities regardless of favorable credit conditions. |
Finnhub - VZ
'Verizon Heads to Europe as Hybrid Debt Sprea...
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