Is It Time to Turn Cautious on Credit?

The video discusses the trends in leveraged loan issuance, highlighting a decrease in issuance and shifts in fund flows. It explores the changing demand for floating rate assets due to Federal Reserve policies and examines the dynamics of credit markets, including liquidity issues. The video compares high yield and loan markets, focusing on valuation and credit quality differences. It also contrasts US and European credit markets, noting the advanced credit cycle in the US and the value seen in European markets.

What factors are influencing the valuation of loans versus bonds?

How does the liquidity of loans compare to that of bonds?

What is the outlook for European high yield compared to US high yield?