Coffee Break Corporate Credit Remains Rock-Solid

UniCredit reports an improved outlook for European corporate credit in 2H26 due to declining stagflation risks. Spreads are expected to widen only modestly, supported by stable corporate credit metrics and cash reserves.

Key Takeaways

• 1.European corporate credit spreads are expected to widen only slightly in 2H26 due to deteriorating credit metrics and strong new bond supply.
• 2.Technological sector bond issuance is on track for an all-time high in 2026, driven by significant funding requirements for AI development.
• 3.The corporate default rate, having reached 4.6% in May 2026, is anticipated to stabilize and subsequently decline later in the year.

Table of Contents

• Corporate credit remains rock-solid
• THE CONTEXT
• THE DATA
• OUR VIEW
• OTHER THINGS TO NOTE
• TODAY'S DATA RELEASES
• Author
• Editors
• UniCredit S.p.A

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