The European debt market has been one of the undoubted successes of the euro project. A large, single currency market has developed to replace the relatively meagre, local currency debt markets that existed before 1999.
Today, the European corporate bond market is animportant part of the global capital market. It offers a more efficient means of local-currency funding for European companies and the chance to diversify their funding away from their traditionally heavy reliance on bank lending (see, for example, the case study on Schaeffler). It also enables larger-scale European currency funding for non-European corporates. And for investors, it provides a bigger, more diversified opportunity set. Development has been especially rapid in high yield debt. It could be argued that the single currency enabled the creation of a European high yield corporate bond market and its establishment as a primary source of funding for European sub-investment grade borrowers.
Source : Invesco Real Estate