Luke Spajic, head of European credit at Pimco Europe, on the positive outlook for European credit markets. He says investors are likely to be curve driven rather than sector driven, although he sees opportunities in financials. He says rating agencies tend to be behind the curve so Pimco relies on its own analysis, exploiting the difference. He sees a deflationary environment in mainland Europe, which is good for bond holders, but he says Pimco is likely to remain underweight corporate debt in Europe’s peripheral economies.