Pavlo Kot

Escalating French bond selloff driven by lower default threshold, Lisa Abramowicz notes

Escalating French bond selloff driven by lower default threshold, Lisa Abramowicz notes
Policy risk reduces French bond threshold

Lisa Abramowicz, journalist and co-host on Bloomberg TV/Radio, discusses the context behind the escalating selloff in French bonds.

She notes that increased policy uncertainty can reduce the actual debt threshold at which defaults become more likely, referencing a recent academic paper.

Abramowicz has recently reported on a 28 basis-point surge in high-yield bond spreads over three days, marking the largest move since October 2025. She also covered a period when companies in the U.S. and Japan hit record peaks for beating earnings expectations in the second quarter. The recent French bond selloff follows these earlier observations on market volatility and corporate performance.

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