Lynam: Credit Dispersion is Back

The video discusses key themes for 2022, focusing on the return of dispersion in credit markets and the importance of credit selection. It explores the credit market's role in assessing risk appetite and recession outlook, highlighting the resilience of stocks. The impact of supply and demand on the high yield market is examined, noting low issuance levels. A record decline in bond prices is discussed, attributed to rate changes rather than credit issues. Finally, the video analyzes fund flows, showing that they do not significantly drive market performance despite outflows in high yield markets.

What has been the trend in gross issuance in the high yield market for 2022?

What is the significance of the record decline in the Bloomberg aggregate IG index?

How do fund flows in the IG market compare to those in the high yield market during bear market rate regimes?