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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