Cisar: Don't assume credit cycle like March 2020

The video discusses the impact of the Omicron variant on the credit market, highlighting the challenges posed by the pandemic and the potential removal of fiscal and monetary support. It explores sector performance, investment strategies, and the expected decline in issuance for the coming year. The discussion also covers risks, policy considerations, and shifts in market demand, emphasizing the importance of adapting to changing economic conditions.

What is one of the main challenges investors face due to the Omicron variant?

• Increased fiscal stimulus

• Decreased central bank support

• Public health restrictions ramping up

• Higher interest rates

How does the current credit cycle differ from that of March and April 2020?

• Increased headwinds in less liquid parts of the economy

• Less allocation to smaller cap private credits

• Higher investment in large CAP corporate credit

• More fiscal and monetary support

Which sector has seen a significant widening in valuations this year?

• Healthcare

• Technology

• Energy

• Consumer goods

What is the expected trend for investment grade issuance next year?

• Increase by 10%

• Decline by 20%

• Increase by 20%

• Remain stable

What is a potential risk mentioned by clients regarding central bank policies?

• Decreased inflation

• Policy error

• Stable interest rates

• Increased fiscal stimulus

What is the expected impact of inflationary pressures on investment grade demand?

• No change in demand

• Shift demand out of the market

• Increase in demand

• Decrease in high yield demand

What trend is being observed in the credit markets regarding ratings?

• Increased ratings volatility

• Migration lower

• Migration higher

• Stable ratings