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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