Guggenheim's Walsh: Recession Coming in Middle of 2023

The video discusses the anticipated recession in the US and its impact on credit markets. It highlights the Federal Reserve's quantitative tightening and rate hikes, which are expected to affect credit availability and increase risks, especially for low-rated credits and zombie companies. The shift from a QE to a QT world is emphasized, affecting companies' access to capital. The video also explores the challenges in private credit markets, noting the lack of transparency and potential issues due to past quantitative easing.

What is the anticipated economic event discussed in the first section?

• A recession in the middle of the year

• Stable economic growth

• A boom in the economy

• A decrease in interest rates

How does the shift from QE to QT affect companies?

• It has no impact on companies

• It reduces inflation immediately

• It makes it easier for companies to access capital

• It restricts access to capital and credit

What are zombie companies struggling with in the current economic climate?

• High cash flow and low debt

• Low cash flow and high debt

• High cash flow and high debt

• Stable cash flow and no debt

What is a significant challenge in the private credit market?

• Low interest rates

• Excessive regulation

• Lack of transparency

• High transparency

What has contributed to poor credit decisions in private markets?

• Lack of capital

• Quantitative easing and easy access to capital

• Strict underwriting standards

• High interest rates