Corporate Bond Market Comment by Raiffeisen Research: OMV, Kapsch TrafficCom, Telekom Austria

Businessn.a. ♦ Published: October 23, 2014; 17:00 ♦ (Vindobona)

"The slight correction on credit markets that lasted until the middle of last week was calmed by speculations of a possible extension of the US Fed’s expansive monetary policy stance, as well as thus far also unconfirmed reports that the ECB might expand its bond purchases to the corporate bond sector. This slight relaxation was also observable in the stock market volatility, measured by the VDAX. This indicator rose to 23.57% p.a. last week and by yesterday had fallen to 17.75% p.a." Raiffeisen Research is seeing similar market developments in their Austrian Corporate Index.

Corporate Bonds in the Spotlight: OMV, Kapsch TrafficCom, Telekom Austria / Picture: ©

Given the almost barren EUR primary market, the current earnings season and upcoming results from the ECB’s stress test are garnering the most investor attention in Austria and the rest of Europe.

While in the USA already around a third of companies on the S&P 500 have reported figures better than expectations, the earnings season and outlooks for it in Austria are…