European companies have broken the record for issuing low-rated bonds

In June 2025, the volume of issuance of corporate bonds with a low credit rating in Europe reached a record of about 23 billion euros, surpassing the maximum of June 2021. 

Companies with ratings below investment grade took advantage of lower borrowing costs caused by increased interest from investors transferring capital from U.S. assets. This is due to concerns about the consequences of trade duties imposed by Donald Trump.

The market was influenced by a decrease in the cost of borrowing, which attracted the attention of investors. Many of them decided to transfer their capital from US assets, which increased the demand for junk bonds. 

This enabled low-rated European companies to place their securities on favorable terms. Experts point out that the market is literally overflowing with deals right now.