This Year We Will See Corporate Deleveraging, Says BNP Paribas’s Hjort

The video discusses the current state of corporate debt, highlighting that corporate debt as a percentage of GDP is at a high level. It explores the trend of corporate deleveraging following market shocks and economic weaknesses. The focus is on the triple B rated corporate debt, which poses a risk if downgraded to non-investment grade. Investors are optimistic about debt reduction, which is seen as positive for credit markets. The potential impact of rate cuts by the Fed is also discussed, with expectations of two cuts unless a significant negative shock occurs.

What is the significance of corporate deleveraging in the context of market shocks?

What are the potential risks associated with a downgrade of triple B rated debt?

How does the current state of triple B rated corporate debt impact investors?

In what ways might central bank actions influence corporate debt levels?

What factors could lead to an increase in rate cuts by the Fed this year?