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Global Perspectives Podcast: are we in a sweet spot for credit investing?
27 Nov 2020
Key takeaways:
- Covid 19 had a very different impact on the credit markets than the last two economic downturns. This was a three week market liquidity crisis, not a traditional solvency crisis with accompanying defaults. Markets remained open and willing to lend to Covid impacted names, albeit at a price
- The crisis could also be followed by a surprising recovery, with the potential for a sharp rebound by next spring or summer. In such a scenario, could 10-year government bond yields be on the rise?
- Recent vaccine and other market friendly news, market resilience this year and signs that companies are seeking to reduce leverage and improve balance sheets, support a positive outlook on credit moving into 2021
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Global Perspectives Podcast:
are we in a sweet spot for credit investing?
27 Nov 2020
Key takeaways:
- Covid 19 had a very different impact on the credit markets than the last two economic downturns. This was a three week market liquidity crisis, not a traditional solvency crisis with accompanying defaults. Markets remained open and willing to lend to Covid impacted names, albeit at a price
- The crisis could also be followed by a surprising recovery, with the potential for a sharp rebound by next spring or summer. In such a scenario, could 10-year government bond yields be on the rise?
- Recent vaccine and other market friendly news, market resilience this year and signs that companies are seeking to reduce leverage and improve balance sheets, support a positive outlook on credit moving into 2021