Morning Meeting: U.S. Credit Outlook for 2017

The video discusses the expected decrease in credit issuance for 2017 due to reduced merger financing and policy uncertainties, particularly around corporate taxes. It explores the impact of tax policy on debt markets, highlighting the potential for reduced supply and changes in borrowing costs. The discussion also covers the implications for investment, suggesting that companies may rely on cash reserves rather than issuing new debt. The video concludes with an analysis of the investment grade market, identifying attractive opportunities in deeply subordinated bank markets and the effects of an operation twist strategy.

In what ways could less issuance of investment-grade debt affect companies' investment strategies?

What are the potential benefits of reduced debt issuance for investment-grade companies?