European credit is more vulnerable to higher rates because the share of IG and HY bonds maturing within three years is higher in Europe than in the US, see charts below.
For US IG, the share has, for the past decade, been stable between 15% and 20%.
The bottom line is that Fed hikes and ECB hikes are having a negative impact on credit, but the impact is going to be more significant in Europe, which increases the likelihood of a harder landing in Europe.
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