Calamatta Cuschieri has published the CC Credit Outlook for H1 2015 which covers the European and the US Bond markets, both within the High Yield and Investment Grade space.

The outlook can be read in full here or abridged here.

The key theme for 2015 is expected to be the decoupling of the US from the rest of the world, as it enters a different cycle compared to its counterparts; investors have already started to discount the fact that the Fed is going to raise rates, consensus being in H2 2015.

On the other hand, in the euro area, the low interest rate environment and the use of monetary easing to propel economic activity and lower unemployment data is expected to be at the forefront of investors’ minds, as policy makers scramble to kick-start economies.

The accommodative stance is expected to continue to provide support for financial assets.

Furthermore, the persistent decline in the price of oil will, apart from creating uncertainty and concerns over additional deflationary pressures, also add to tensions between Russia, China, OPEC members and the West.