It is worth observing that while issuance increased somewhat, its historically muted levels are also having an impact on liquidity in secondary trading. Although volumes have followed an 'M' like pattern since the start fo the year, suggesting periodic levels of higher and lower activity, European high yield trading has seen bid-ask spreads rising since the start of March 2024, according to MarketAxess CP+ data, while the market for investment grade debt has seen a more continuous fall. As interest rates stay higher for longer – a policy supported by some central bankers – credit risk increases.