We anticipate resilient fundamentals, but also volatility tied to inflation and higher short rates.

Central bank monetary tightening has arrived, with a resulting shift upward in market interest rates and widened credit spreads. Although there is risk to the upside, we believe that inflation will ease from peak levels but remain elevated above targets until well into next year. In this environment we are seeing opportunities across credit sectors. Continued macro volatility will keep spreads “two-way,” while positive underlying fundamentals across a range of sectors should provide support.