World Economy

Nearly €215 Billion of French Corporate Bonds Now Trade Safer Than Government Debt

Nearly €215 billion ($241 billion) of France's corporate bonds now trade as if they were safer than government debt. This represents an approximately 18-fold increase since early 2026, following a punishing selloff in French government securities. The shift reflects growing investor concern about France's debt trajectory. Corporate bonds are now perceived as lower-risk investments than French sovereign obligations. This market reversal signals investor skepticism toward the government's creditworthiness and underscores challenges facing major eurozone economies in managing debt amid economic uncertainty.