…and I thought we’d seen it all in 2008. We have updated our views on global credit to a more positive outlook in recognition of both the meaningful change in valuations this month and the significant policy response that has been delivered to combat the economic fallout from COVID-19. The speed and magnitude of the move has been breath-taking.
Corporate bonds have benefited from extraordinary monetary policies. But as the probability of global recession rises, we worry that vulnerabilities within credit markets could disturb this relatively blissful environment for investors.;