Euro overthrows dollar in corporate bond sales

The euro surpassed the dollar for the first time in its history in the corporate bond sale in January. Experts stated that this was due to the better-than-expected economic outlook in Europe.

Although the dollar continues to dominate the debt markets, the euro has since the beginning of the year dethroned the US currency as the most recognized currency in corporate finance.

According to Bloomberg data, companies borrowed 98 billion euros (107 billion dollars) in January, and 101 billion dollars in dollars.

The return in the euro gained momentum with the belief in the European economy and the increase in power security. The currency unit, which was introduced in 1999, fell to the level of 1 against the dollar after developments such as the political chaos experienced in Italy last year, Russia’s invasion of Ukraine and the course of monetary policy. underhad regressed.

Matthias Reschke, of JPMorgan, said: “The market was more concerned about Europe than the United States. As the power crisis over the winter was less severe than expected, worries decreased, euro lending became more attractive.”

The European Central Bank decided to raise 50 basis points after its meeting on Thursday. After this breakthrough, pricing indicators that the ECB would slow down after March were observed in credit indicators.