Credit is the Next Shoe to Drop

Key Takeaways:

• We expect to see inflation continue to come down, but it will not be in a straight line.
• The markets have been focused on rates, but have not priced in a downturn in credit.
• We will see more pressure on margins as the recessionary cycle continues.
• Expect to see rolling recessions throughout the economy; commercial real estate is already in recession.
• Companies with cash will come through the cycle pretty well, but idiosyncratic credit risk is where we will see problems.
• It is a good time to be invested in higher quality credit, particularly AAA and AA structured credit tranches.

Read "Use This 'Goldilocks Market' to Prepare for Its Eventual End"

VIDEOS & PODCASTS

 

Are Fixed-Income Investors Being Compensated for the Risks They Are Taking

Maria Giraldo, Investment Strategist for Guggenheim Investments, joins Asset TV’s Fixed Income Masterclass.

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Are Fixed-Income Investors Being Compensated for the Risks They Are Taking?

 

Macro Markets Podcast Episode 41: Quarterly Macro Themes for Q3 2023

U.S. Economist Matt Bush, Investment Strategist Maria Giraldo, Investment Strategist Chris Squillante, and Economist Jerry Cai join Macro Markets to discuss the latest Quarterly Macro Themes, which takes a deep dive into issues helping shape our baseline economic views.

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Macro Markets Podcast Episode 41