Highland Capital Management
January 26, 2018
A pioneer in alternative asset management.

Credit Outlook: Seven Themes to Watch in 2018

The fuel of asset inflation and economic expansion since 2009 has been access to and availability of cheap capital. Therefore, having a finger on the pulse of these accommodative credit markets provides a critical indication of where we are in the economic cycle.

While in equities, investors can succeed on the ability to predict EPS versus consensus estimates alone, success in credit necessitates scrutinizing businesses from a fundamental perspective, which often is among the first places where warning signs for the greater economy appear.

With that in mind, our take on the credit markets is not pointing us toward a negative outlook for 2018, but there are certainly areas we are watching closely given their potential to signal a turn in the economic cycle in the years ahead.

The below highlights seven themes to watch in credit in 2018. For more on these key themes see Highland's complete 2018 Credit Outlook.

Click the “Exclusive Access” button to access the full 2018 Credit Outlook from Highland Capital Management.

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This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document. It should not be assumed that any securities discussed in this commentary will increase in value. Highland Capital Management, L.P. (“Highland”) will not accept liability for any loss or damage, including, without limitation, any loss of profit that may arise directly or indirectly from use of or reliance on such information. 
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Highland disclaims any obligation to update or revise any statements or views expressed herein. In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Nothing contained herein should be deemed to be a prediction, projection or guarantee of future performance. No representation or warranty is made concerning the completeness or accuracy of the information contained herein. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. Highland and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Highland and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Highland encourages any person considering any action relating to the securities discussed herein to seek the advice of a financial advisor. Includes Highland Capital Management, L.P. and its affiliated advisers.


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