Euro high-yield bond default insurance cost remains low for many years

According to Bijie.com, on September 16 (UTC+8), on the eve of the announcement of the Federal Reserve's interest rate resolution, market risk preferences rose, and the cost of insurance default risk for high-yield bonds (junk bonds) continued to remain at a low level for many years. The market expects that the Fed will implement interest rate cuts to drive investors' sentiment to a better position. S&P Global Market Intelligence Data shows that the iTraxx European Cross-Index, which measures euro high-yield bond credit default swap, fell to 248 basis points on Monday and is currently maintaining this level, the lowest since January 2022.