For subscribers
BlackRock and others pick Europe credit over US as bank woes deepen
Sign up now: Get ST's newsletters delivered to your inbox
Fears are growing in the US that more distressed lenders could emerge.
PHOTO: REUTERS
NEW YORK - Some of the world’s biggest asset managers are buying up European corporate bonds – seeing the region as a safer bet as turmoil engulfs US regional banks.
BlackRock and Legal & General Investment Management prefer high-grade European corporate bonds over similar US debt in the aftermath of the collapse of Silicon Valley Bank and rescue deal for First Republic Bank. They see a buying opportunity in Europe’s credit spreads – which are still wider than the US’ after last year’s rout for the asset class.
