Market Wrap-up

Latest edition · September 23, 2026

Credit Market Wrap up Tight spread but high yields keep markets guessing

European credit spreads have widened modestly in September to 97bp but remain tight at one standard deviation below their historical mean. However, elevated corporate bond yields (4.31%) and superior Sharpe ratios compared to government bonds continue to support credit demand.

The European credit secondary market experienced quiet, directionless trading even after upside surprises in eurozone September preliminary PMI (53.1). Although corporate spreads have widened 6bp this month to 97bp, they remain expensive historically at one standard deviation below average. Nonetheless, absolute yields on the iBoxx Corporates index have climbed to 4.31% due to sovereign market sell-offs. Bolstered by strong corporate fundamentals, attractive Sharpe ratios compared to 5y sovereigns, and active primary market appetite (€92.8bn issued MTD), credit markets are expected to remain well-supported through year-end.

Key takeaways from the latest edition

• 1.Credit spreads have widened 6bp in September to 97bp over benchmarks, yet remain historically tight at one standard deviation below the long-term mean.
• 2.Despite tight spreads, absolute yield on the iBoxx Corporates index is at 4.31%—the highest level of the year—making credit attractive compared to prior decades.
• 3.Primary bond issuance remains resilient and ahead of pace, reaching €92.8bn month-to-date in September, €2.1bn higher than September of the prior year.

What this series covers

• Market highlights
• Today's new issues
• Market thoughts
• iBoxx Corporates spread to benchmarks at one standard deviation below the mean
• iBoxx Corporates yield
• Sharpe ratios show credit is still more attractive

Edition archive

• Credit Market Wrap up Tight spread but high yields keep markets guessing

  September 23, 2026

• Credit Market Wrap up Heavy Tech issuance is not enough to overwhelm the credit markets

  September 22, 2026

• Credit Market Wrap up Default rates move in opposite directions, but does it matter

  September 21, 2026

• Credit Market Wrap up The bullish case for credit II

  September 16, 2026

• Credit Market Wrap up The bear case for credit

  September 15, 2026

• 2026 09 09 Credit Market Wrap up Yields Are High and Rising, But Does It Matter

  September 9, 2026