Current State of Credit Markets

The credit markets are currently demonstrating notable strength, aided by substantial liquidity stemming from COVID stimulus measures. Investors, including corporate treasuries and insurance companies, are actively seeking attractive credit returns, leading to a tightening of spreads in both public and private credit sectors. This combination of abundant capital and resilient corporate performance has fueled an evolution in investor appetite, pushing them towards more complex private credit products that offer additional returns and safety. The market sentiment is optimistic, suggesting a robust environment for credit investment despite the lingering concerns regarding inflation and economic performance.