Oaktree Capital's Madelaine Jones is urging investors to diversify into European credit markets, citing a recent uptick in interest. Speaking with Bloomberg's Guy Johnson, the portfolio manager highlighted shifting dynamics across the continent's debt landscape as opportunities emerge.

This call comes as European bonds and loans offer relative value compared to stretched U.S. markets. With central banks signaling potential rate cuts, credit spreads in Europe could tighten further, making selective exposure attractive for institutional portfolios seeking yield.

Jones's perspective underscores a broader shift toward non-U.S. assets. Investors should watch for policy decisions from the ECB and major corporate debt issuances. Diversification into European credit could mitigate concentration risk while capturing potential upside in a recovering region.