The Credit Edge by Bloomberg Intelligence JPMorgan Likes Real Estate More Than Private Credit
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Dec 5, 2024 Gabriela Santos, Chief Market Strategist for the Americas at J.P. Morgan Asset Management, shares her insights on today's investment landscape. She argues that real estate and private equity are more promising than private credit. Santos highlights signs of recovery in commercial real estate and discusses the implications of bond spreads, CCC bond risks, and the effects of trade wars. The conversation also covers strategies for navigating credit risks and the impact of the strong U.S. dollar on international opportunities.
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2024 Economy: Round Two
- The 2024 economy, round two, is projected with 2% growth and 2% inflation.
- New administration policies, especially taxes and tariffs, will heavily influence these figures.
Tariffs as Policy
- Tariffs are now viewed as a policy tool, not just for negotiations, but also for domestic aims.
- The new administration likely will implement tariffs, impacting sectors like retail.
Fixed Income's Revival
- Fixed income markets are becoming more important for portfolio construction due to positive real rates.
- Double-digit equity-like returns in corporate credit are likely over, but the carry is still attractive.