# 1. Low levels of deficiencies
Butler pointed out how European corporate bonds have historically had low lows, which he sees is not declining. ‘The average 12-month high in European and US production ended in October at around 4% and 8%, respectively, and over the next 12 months, we expect half of that pace in Europe and around 6% in the US, ‘he said.
While Butler believes deficits could rise in the longer term than the next 12 months, he said they are likely to stay below 3% over the next two years. This will be supported by refinancing opportunities and overcoming.
‘The large disparity in US and European base rates is driven in part by the openness of the European market to highly mobile industries, such as energy, gaming, accommodation and leisure , which accounts for more than 55% of U.S. high-yield money in 2020. As we note below, the structure of Europe’s incentive efforts is also a fundamental activity. reduce it, ‘he said.