"Real Yield" Roundup: Optimism Amid the Cracks in Credit

The transcript discusses the expected moderation of growth in 2019 and its implications for credit markets. It highlights the risks associated with investment grade credit, particularly the triple B component, and the potential impact of M&A activities. The discussion also covers the behavior of credit spreads and treasury yields, noting that corporate yields have remained stable. The role of leverage loans and their attractiveness in a potentially slowing Fed environment is examined. Overall, the outlook for credit remains positive unless a recession occurs, with no immediate signs of systemic risk.

What is the significance of idiosyncratic risks in the context of the credit market?

What are the implications of the current corporate yields in relation to treasury yields?

How might M&A activity influence the leveraged loan market in 2019?