Credit market pressures ease as soft landing expectations heave into view

Janus Henderson Credit Risk Monitor

Pressure on the credit markets is beginning to ease as the prospects of a potential soft landing and a friendlier central bank stance come into view.

According to the latest Janus Henderson Investors Credit Risk Monitor, which tracks key indicators affecting credit portfolios, falling inflation and rate cuts expectations are allowing yields to decline and companies to more easily refinance in capital markets.  This is despite bank lending standards remaining historically tight. However, the asset manager argued earning forecasts suggest companies may be through the "worst phase". Corporate defaults to rise as access to capital deteriorates following banking turmoil Against this backdrop, both the ‘Access to Capital Markets' and ...