The market trend is changing, and European investment-grade bonds are rising unexpectedly.

Credit analysts at LBBW Bank pointed out in a report that currently, euro-denominated investment-grade bonds are more attractive than German sovereign bonds. Although the risk premium of euro investment-grade bonds has narrowed compared to German government bonds, analysts still consider them to be an attractive alternative. Analysts advise investors to consider the risk of widening yield spreads in the short term, despite the attractiveness. This shift in perspective may indicate an adjustment in market risk preference, moving away from traditional safe assets towards higher-yielding credit products.