Surveillance: Hike Probability with Dutta
Bloomberg Surveillance
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The New Interest Rate Regime Harkens Back 16 Years, 20 Years, 25 Years
Anna Lyne is a macro credit research analyst at BlackRock. She says the new interest rate regime harkens back 16 years, 20 years, 25 years. And as you brilliantly say in your note of macro credit research, there's a new higher cost of capital. Have we adjusted to it? Are we in early innings? I think that's true for areas like leverage loans, where we expect the default rate to outpace that for high yield bonds. We're expecting most of the pain to be on the smaller banks,. But I don't think it's limited to those areas. That being said, I view it as more normalization as opposed to deterioration in the consumer.
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