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.