02-07-2025
Euro Credit to Benefit From Dollar Shift, Deutsche Bank Says
Investors will shift increasing amounts of cash coming from US investment-grade bonds to Europe as the 'de-dollarization' theme is gaining traction, according to Deutsche Bank AG strategists.
The team led by Cem Keltek expects 25% of reinvestment flows — where investors put coupon payments and bond redemptions — from dollar-based investment grade credit to move elsewhere. This is equivalent to an average of $9.3 billion every month and the European credit market could absorb about half of it, the strategists wrote in a report.
