Credit Supply, Central Bank Holdings, and Potential Impact

The inflation vs. recession debate and how that will drive a Fed pause vs. pivot dynamics is casting a shadow over all markets, including credit. The key question for us is whether the tightening of financial conditions will affect credit. In this episode of the Credit Crunch podcast, host Mahesh Bhimalingam, chief European credit strategist at Bloomberg Intelligence and Peter Chatwell, head of global macro strategies at Mizuho international, discuss the macro headwinds due to central bank tightening, especially the Fed, and the impact on risk-free and risk assets, including credit.

They address yield-curve inversion and its correction, and the impact on credit conditions. The episode also highlights credit fundamentals and flows.