In the current economic environment, bond financing is very disadvantageous compared to bank loan financing for companies

When, as is the case today, interest rates are raised to fight inflation, the economy may slow down, and there are multiple uncertainties leading to high risk perception, we see: A sharp rise in High Yield credit spreads; A small increase in risk premia associated with interest rates on corporate bank loans. This means that in this configuration, countries where companies are financed in the bond market (United States) suffer much more than countries where companies are financed by bank loans (euro zone).