...] Quarterly Market Monitor and Forecast Summary Mixed Rating Performance: 4Q13 saw a 35% improvement in the corporate downgrade-to- upgrade ratio to 3.9:1, partially reversing a rise in previous quarters. The stabilisation was driven by the energy and utilities sectors with a 77% reduction in net downgrade volume. The telecoms sector however experienced a worsening net downgrade profile. Robust High-Yield Issuance: Developed-market European high-yield (EHY) corporates issued a record EUR87bn in new bonds in 2013, surpassing the prior-year volume of EUR65bn. Spreads also remain off pre-crisis lows, providing a degree of cushioning against rising benchmark rates, while bolstering the appeal of EHY relative to USHY. Favourable Funding Conditions: Continuing favourable borrowing conditions boosted 2013 corporate issuance by 4% to a fresh high of EUR383bn. Spreads on European corporates compressed 23% during the year ¡ the steepest annual decline since 2010 ¡ as investors took increasing comfort...
