From Inflection to Transition – December 2017

What does 2018 have in store for corporate credit markets?

  • Global growth likely to remain strong and synchronised, although global central bank monetary policy will likely become less aligned 
  • Expect a gradual rise in inflation, which has not yet been priced into markets
  • Hedging costs likely to be more pronounced between US dollar and euro/yen based investors
  • Volatility should remain low as markets enter 2018, but will largely be dependent on inflationary trends
  • Fiscal reform likely to be positive for US credit
  • A focus on fundamental research should be the key determinant of underlying credit quality

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