The European high-yield bond market is booming, with junk bond issuers rushing to "lock in" fixed interest rates.

According to the WiseFinancial APP, in recent weeks, more and more European companies are turning to fixed-rate financing. The current fixed-rate bond market is deeper, more liquid, and its overall financing cost is lower than floating rate products. European high-risk borrowers are using this to lower financing costs and hedge against the risk of rising interest rates. Although the market has already digested the expectation that the European Central Bank will raise interest rates three times this year (before the outbreak of the war in the Middle East, the market expectation was zero), fixed-rate debt is still relatively cheaper. This shift is often a precursor to higher bond yields.