Income Returns have descreased

Income returns have decreased by almost 70% for European investment grade bonds and by around 50% for European high yield bonds over 2007 to 2020. European loans, however, have been much less affected as the asset class is not part of the European Central Bank’s quantitative easing programmes. European loans are at an advantage as they make up the safest part of the capital structure, are floating rate assets (low duration) and income returns have been relatively stable averaging in the 4-5% range.