BlackRock's Keenan Favors Credit Markets in the Short Term

The transcript discusses the economic reopening and its impact on portfolio risk management. It highlights the cyclical nature of economic data and the expected acceleration in demand due to pent-up consumption trends. The conversation also covers the significant role of monetary and fiscal stimulus in shaping the short-term economic outlook. Long-term challenges include a more normalized recession and the potential failure of some businesses and municipalities. The discussion concludes with an analysis of the credit markets, emphasizing the perceived risk and opportunities in high yield and leveraged loan markets.

What does the speaker predict about the economic situation in Q3 and Q4?

What are the implications of high implied default rates in the credit markets?