Franceโs Decades of Deficits Bring Home a Painful Risk Premium
After decades of budget deficits and steadily rising debt, markets are putting a new price on French risk.
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After decades of budget deficits and steadily rising debt, markets are putting a new price on French risk.
The spread on the riskiest US corporate bonds has jumped above 1,000 basis points over Treasuries for the first time since the regional banking crisis in 2023. That level of risk premium typically implies high probability of default, restructuring or loss.
A measure of French bond risk reached another milestone as investors gird for potential political upheaval next year.