KBRA Releases Research — Expectations Versus Reality for Euro Area Sovereign Credit

Kroll Bond Rating Agency Europe Limited (KBRA) releases research on the monetary policy conditions within the euro area. With inflation looming, borrowing rates contend between improving economic data and policymaker narrative.

Key Takeaways

• The recent upwards trajectory of economic data within the euro area illustrates recovery is firming.
• The European Central Bank’s (ECB) new monetary policy strategy fuels the recovery and contributes to inflation.
• ECB policy has improved debt profiles among member states, while stable low issuance costs reflect confidence in a more lax policy stance.
• Euro area sovereign debt issuance could be influenced by shifting expectations for market rates.

Click here to view the report.

Related Publications

• KBRA Podcasts: Old Themes Transition to New Themes in Sovereign Credit Risk in Europe
• KBRA Podcasts: Globalization Concerns Subside
• Sovereign Credit Risk: Taking Stock Mid-Pandemic
• Coronavirus (COVID-19): EM Credit Risks: Heightened but Differentiated
• Coronavirus (COVID-19): Central Bank Balance Sheets: New Rules Being Written

About KBRA Europe

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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