Credit Spreads Headed Wider: Morgan Stanley's Sankaran

The transcript discusses the current state of credit markets, highlighting that while credit fundamentals remain stable, there is a concern about potential deterioration and downgrades. Despite recession risks and global issues like China's lockdowns, credit markets have rallied. The discussion also covers the euro region's fiscal strategies to support households amid high energy prices, which complicates central banks' responses due to inflationary pressures.

In what ways does the text suggest that the central banks might be affected by fiscal transfers?

What is the overall sentiment regarding credit market stability as discussed in the text?