By Jeroen van den Broek, Global Head of Credit Research and Strategy
Mildly bullish for 2020; it's a beta game
- We are mildly bullish for 2020, seeing technicals dominate over the impending US economic downturn threat which could easily lead to higher defaults and a repricing of the leveraged debt space.
- Despite tight spreads and negative yields, asset allocation will still favor lower beta investment-grade European credit as the Corporate Sector Purchase Programme (CSPP) and net supply support spreads and offer carry.
- For us, the Queen song title of the year is 'I want it