In this month’s Global Markets Overview:

  • We retain a cautious outlook for high-yield bond and leveraged loan markets
  • Current pricing implies a low level of defaults relative to historic average outcomes and our economic outlook
  • We believe risks are tilted toward an increase in corporate defaults over the next one to three years, particularly in the U.S. leveraged loan market where we expect unattractive outcomes for this credit sector in absolute terms and relative to more niche opportunities within securitized credit.

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