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    Current credit fundamentals

    Current credit fundamentals

    27 February 2023 Fixed income, Video

    Peter Bentley, Co-Head of Fixed Income

    Key takeaways 

    • The fundamental backdrop for credit markets is mixed, with tighter monetary conditions slowing economic growth and inflation and real borrowing costs still elevated.

    • Global investment grade credit spreads have cheapened, but valuations are not that exciting given the fundamental backdrop.

    • We foresee above average levels of volatility and market dislocation in the short to medium term, potentially leading to opportunities for active managers.

    • For those with a broad remit, some segments of credit markets appear attractive, including high yield, asset backed securities and US municipal bonds.

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