Bruce Richards Says You Want to Ride 'The Credit Horse'

The transcript discusses the market's positive reaction to Pfizer's news and the healthcare sector's resurgence. It analyzes the credit market dynamics, highlighting the Fed's intervention and its impact on liquidity. The discussion covers trends in the high yield market, noting changes in ratings and issuance. The concept of a K-shaped recovery is explored, with a focus on restructuring prospects and elevated default rates. Finally, the transcript identifies opportunities and risks in the credit market, emphasizing the importance of security selection.

What was the market's reaction to the Pfizer news according to the transcript?

• The market was confused.

• The market reacted extraordinarily well.

• The market was indifferent.

• The market reacted negatively.

How did the Federal Reserve respond to the liquidity crisis?

• By cutting government spending.

• By reducing interest rates to zero.

• By injecting $4 trillion of QE in five weeks.

• By increasing taxes.

What percentage of high-yield issuers had a double B rating in 2008-2009?

• 56%

• 50%

• 60%

• 40%

What is a K-shaped recovery?

• A recovery that is slow and steady.

• A recovery where all sectors grow equally.

• A recovery where some sectors grow while others decline.

• A recovery that is rapid and uniform.

What is the expected default rate for 2021 and 2022?

• 5%

• 4%

• 3%

• 6%