Subsequent to the 2008 financial crisis the global economic recovery has been one of the longest in recent history - in part due to the depth of the downturn and (by historical standards) the low growth seen in the recovery phase. The economic cycle is now seen as extremely mature by many commentators and so there is increased attention on structure and quality within the credit markets and whether greater risks are building up within the system which will become evident in the next downturn.
In this insight piece we discuss the current risk levels in corporate debt and its potential future effects on the wider market. We outline what we believe to be the reasons behind the decline in credit quality, and how we are taking this into account within our own portfolios.
For the full commentary, click here.