Europe's high-yield bond market has gotten tantalizingly cheap, according to big-gun debt funds. Money managers at JPMorgan Asset Management and PGIM Inc., who oversee about $70 billion collectively, say it's time to buy.

Even as the market tries to digest the equivalent of $10 billion of new supply forecast for September and political risk simmers in Italy, there's a valuation buffer, say investors.

Case in point: Europe's speculative-grade companies are trading with higher spreads than U.S. peers, driven in part by populists in Rome rising to power in May. That's a break from historic norms given the region's typically higher average ratings.

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