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Europe’s Deepening Stimulus Habit Will Underpin Credit in 2021

Dec. 18, 2020, 10:30 AM

Europe’s nine-month credit rally from the depths of the coronavirus crash last March is likely to continue at least through 2021, albeit at a slower pace with a chance of bumps along the way.

It’s a common view among credit-focused analysts at institutions such as JPMorgan Chase & Co., Morgan Stanley and UBS Group AG. Not only will the massive monetary stimulus from the European Central Bank that averted a financial crisis this year remain in place, but progress toward mass vaccinations against Covid-19 will help drive a general economic recovery.

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