2020 a Better Year for Equities Than Credit: NatWest’s McCormick

The video discusses Jeffrey Gundlach's views on collateralized loan obligations (CLOs) and market trends for 2020. It highlights the potential risks and rewards of investing in higher-yielding assets, emphasizing the importance of understanding illiquidity risks. The analysis covers the evolution of credit markets, the impact of central bank liquidity, and the likelihood of a recession or default cycle. The speaker predicts a better year for equities compared to credit and bonds, given the expected reluctance of central banks to ease policy further.

What investment does Jeffrey Gundlach encourage people to consider?

• Real estate

• Cryptocurrency

• Collateralized loan obligations

• Government bonds

What is a key factor that has made credit markets expensive over the last decade?

• Increased government spending

• Central bank liquidity

• Rising inflation

• Technological advancements

According to the transcript, what is the base case scenario for the economy in 2020?

• A severe recession

• No recession with an active Fed

• A default cycle

• Stagnant economic growth

Which market is predicted to perform better in 2020, according to the transcript?

• Commodities

• Real estate

• Equities

• Government bonds

What was the unexpected outcome in the global manufacturing cycle in 2019?

• A rise in government bond yields

• Equities remained stable despite a weak cycle

• A surge in real estate prices

• A significant drop in equities