Creditsights' Cisar: More Normalized Default Environment Ahead

The video discusses the current state of the bond market, highlighting a significant drop in returns but an attractive reset in yields. Investors are concerned about potential recessions and the impact on defaults and downgrades. The market is pricing in a more normalized default environment, and the Federal Reserve's actions are influenced by capital flow into credit markets. Issuance is expected to slow down, especially in investment grade, due to higher borrowing costs and typical seasonal patterns.

How does the current distress ratio in the high yield market affect default expectations?

What is the expected trend for issuance in the investment grade market over the next six months?