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2025-09-18 17:20:54
[A wave of interest rate cuts is sweeping the globe, fueling a global frenzy for risky assets] ⑴ The Federal Reserve announced a 25 basis point interest rate cut on Wednesday, significantly boosting market sentiment. ⑵ Subsequently, the cost of insuring euro-denominated credit against default has subsequently declined. ⑶ This rate cut is driving global investor appetite for risky assets. ⑷ According to S&P Global Market Intelligence data, the European Cross Credit Default Swap Index, which measures credit default swaps on euro high-yield bonds, fell 3 basis points to 248 basis points. ⑸ This data change reflects easing market concerns about credit default risk. ⑹ The Fed's actions sent positive signals to global markets, prompting capital flows to riskier asset classes.
