How European and US credit indices differ

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30 March 2026 Fixed income

"The US credit market has generated stronger annual returns in USD terms over the longer term [since 2000]…however, the higher levels of return from the US market have been matched by higher volatility."

The US and European corporate bond markets are the largest and most liquid credit markets. Both offer access to thousands of company-issued bonds from a wide and diverse range of issuers.

Financials dominate the European investment grade market, while the US leans more heavily toward the industrial, technology and energy sectors.

Investment grade bonds in both regions have historically provided reliable income with very low risk of default, making them suitable as core components for investors seeking stability and diversification.

In this article, we aim to explain what it means to invest in credit markets, comparing the structure, size, and characteristics of the US and European corporate bond markets. We highlight the differences in market size, sector composition, credit ratings and default risks.