Don Young

Credit Opportunities: Managing Shifting Tides

Kevin Duignan, Michael Buchanan, Mathieu Chabran, Anne Walsh, Don Young

This expert panel analyzes the rapid credit market recovery driven by aggressive Federal Reserve intervention and the CARES Act, which enabled high-quality issuers to access capital despite a sharp initial bear market. Speakers highlight a growing divergence where private credit and structured products like CLOs offer tailored solutions for mid-market borrowers while sectors like transportation face severe liquidity stress and a rising risk of "zombie" company defaults. Looking forward, the discussion predicts continued market support through the election cycle and vaccine rollout, though participants warn that prolonged monetary expansion may eventually lead to inflationary pressures and a necessary correction of over-leveraged entities.