A multitude of factors impacted global credit markets, with the collapse in commodities, slowing global growth, problems in China, and concerns over diverging central bank policies all weighing on returns.
Much of the issues emanating from China and plaguing central banks are because of over-indebtedness, and so far in 2016 we have experienced more of the same. Therefore, we anticipate the trend of aggressive leverage - and how to tackle it - will be the key theme in 2016 and beyond. The necessary growth needed to de-lever has simply not taken place in lower-quality global credit markets, and weaker developed markets. It has therefore left us facing many headwinds. The US economy is flashing warning signs, including widening credit spreads, increasing instances of ratings downgrades, ri...
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