Wesley Sparks, head of US credit strategies at Schroders, has named a number of reasons the victory of Donald Trump in the US Presidential Election could trigger a recession in the next 18 months.
Sparks (pictured), who runs the firm's ISF Global High Yield fund, said Trump's election has "majorly reformed" his outlook on the fixed income market, driving him towards high yield and longer-dated corporate issues. The credit specialist is concerned the optimism around Trump's ability to boost US economic growth is overdone and investors could be disappointed when this growth does not materialise, causing a "blip" in markets in 2017. He added: "If treasury yields continue to sell off with such force they create fear in markets, it could be like the Taper Tantrum in 2013," though ...
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