Why BlackRock's Keenan Prefers Credit to Equities

The transcript discusses the current economic cycle, highlighting the transition from excess liquidity to inflation and the resulting market volatility. It examines the credit markets, noting their adjustment to new rate regimes and the improved health of the high yield index. The discussion also covers the lack of significant stress in the high yield market and the potential for future economic changes, including increased costs and lower free cash flow conversion. The overall outlook suggests that credit markets may offer attractive opportunities compared to equities in the coming years.

What is the expected impact of inflation on free cash flow conversion for companies in the coming years?

How does the speaker view the relationship between credit markets and equity markets moving forward?

What are the potential risks associated with the current state of the credit market as mentioned in the text?