France's Sovereign Debt Now Perceived as Riskier Than Many Corporate Bonds Amid Fiscal Concerns

Nearly €215 billion of France's corporate bonds are now trading as if they are safer than the government's sovereign debt, an almost 18-fold increase since early 2026. This shift, affecting 38% of France's high-grade company debt, highlights deepening concerns over the country's fiscal situation, budget gridlock, and upcoming presidential election.