When I started writing this launch issue of 360°, I aimed to provide catchy, easy-to-understand predictions followed by non-consensus opinions that would grab your attention. Unfortunately, I can’t give you either: disappointingly, my core views are currently profoundly vanilla.
A summary of my core views is as follows:
- Credit fundamentals and affordability are positive.
- Having been stretched, valuations are now more attractive and the relative value of credit against equities appears favourable.
- Technicals are severely stretched in certain credit sectors, but are broadly neutral or positive.
- The complexity and illiquidity premia of certain sectors and instruments still offer significant value for investors with the required access and tolerance for risk.
