Credit Demand Looks Strong into 2025: Real Yield

The transcript discusses the strong demand for investment grade funds since November 2023, highlighting the optimistic outlook for yields and credit spreads into 2025. It explores the relationship between equity bear markets and credit spreads, noting that a significant equity downturn is needed to pressure high yield markets. The discussion also covers how issuers have more options, making the credit market a less reliable economic indicator. The large equity cushion is seen as providing substantial support to the credit market.

In what ways has the role of the credit market changed compared to the past?

What is meant by the term 'equity cushion' and how does it support the credit market?