## Figure 1.7. Credit Market Developments in the United States and Europe

## Source details

**Canonical URL:** [Figure 1.7. Credit Market Developments in the United States and Europe](https://www.imf.org/-/media/files/publications/gfsr/2019/april/english/ch1data/charts/figure1-7.pdf)

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### 1. US and European Credit Spreads
- Series shown: EUR IG bonds; US IG bonds; US HY bonds; US leveraged loans; Europe HY bonds and leveraged loans; Bank loans; High-yield bonds; US IG; US HY; US leveraged loans; EUR IG.
- Indexing convention: 100 = October 2018.
- Axis and date markers visible: 0; 50; 100; 150; 200; 250; 300; 350; 400. Time labels include 2017:Q1; 17:Q2; 17:Q3; 17:Q4; 18:Q1; 18:Q2; 18:Q3; Oct. 18; Nov. 18; Dec. 18; Jan. 19; Feb. 19.
- Note: IG and HY are investment-grade and high-yield option-adjusted spreads to government bonds. For leveraged loans, spread is over Libor.

### 2. US and European Corporate Bond and Leveraged Loan Issuance
- Units: Billions of US dollars.
- Primary market conditions tighten in Q4 (annotated on the figure).
- Time markers shown: Jan. 2017; Jul. 17; Jan. 18; Jul. 18; Jan. 19.
- Vertical axis tick values shown: 50; 75; 100; 125; 150; 175; 200.

### 3. Global Credit Fund Flows
- Units: Share of assets under management (AUM).
- Time markers shown: Jan. 2017; Jul. 17; Jan. 18; Jul. 18; Jan. 19.
- Vertical axis tick values shown: –10; –8; –6; –4; –2; 0; 2; 4; 6.

### Key observations (from figure annotations and labels)
- In late 2018, credit spreads widened.
- New issuance declined in Q4 2018 as primary market conditions tightened.
- Fund flows decreased in late 2018, before recovering in early 2019.

### Definitions and abbreviations shown on the figure
- AUM = assets under management
- EUR = European firms
- HY = high yield
- IG = investment grade
- Libor = London interbank offered rate

*Sources: Bloomberg Finance L.P.; Barclay’s; Dealogic; EPFR Global; Haver Analytics; S&P Leveraged Commentary and Data; and IMF staff estimates.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2019/april/english/ch1data/charts/figure1-7.pdf_