At Any Rate

Speadbites: Food for Credit Market Thought as We Head Into the Holidays

8 snips
Dec 13, 2024
Daniel Lamy, Head of European Credit Strategy Research at J.P. Morgan, dishes on the evolving landscape of credit markets. He reveals positive shifts in private credit concerns and discusses investor sentiment in Europe as we approach 2025. Lamy analyses trends in capital markets, noting a decline in leveraged loan refinancing. The podcast further explores the connection between sovereign credit stability in France and corporate bonds, while also comparing the challenges facing bonds versus loans amid economic shifts. Tune in for insightful predictions as the market evolves!
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INSIGHT

2025 Credit Outlook

  • The 2025 credit market outlook resembles 2024, with robust demand driven by all-in yields.
  • Spreads are tighter than 12 months ago, but overall yields maintain investor interest.
INSIGHT

Private Credit Concerns

  • Private credit concerns have lessened due to increased capital fungibility between private and public markets.
  • A slight concern is the rising proportion of non-cash accrual companies in private credit portfolios.
INSIGHT

European Investor Sentiment

  • European investors show surprising resilience despite macro uncertainties and political instability.
  • High-grade investors are more positive than high-yield investors, influenced by improving fundamentals and inflows.
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