2004: end to the easy money

After a free ride in 2003, it appears credit analysts will have to earn their keep in the coming year as returns are expected to be increasingly difficult to come by

For much of last year, bond market participants and observers regularly voiced concerns that the market was pricing in good news that was yet to materialise. However by the end of the year, many of the factors that had continued to concern investors were now looking much improved – economic growth in Europe was showing signs of returning and corporate de-leveraging was also becoming more common thanks in part to increasing revenues.

Despite these encouraging signs, the European