It's Not Time to Write Off Credit: Invesco

The video discusses the current state of economic growth, highlighting that while growth is moderating, it remains healthy. The conversation covers investment strategies, focusing on the risks and rewards of high yield and investment-grade securities, particularly triple B bonds. The potential for a challenging default cycle is noted, with concerns about market liquidity and the ability to exit positions. Despite uncertainties, the demand for leveraged loans remains strong, supported by institutional and foreign interest.

What is the current state of economic growth according to the discussion?

• Growth is moderating but remains healthy.

• Growth is declining rapidly.

• Growth is accelerating significantly.

• Growth is stagnant.

Why is high yield considered expensive in the current market?

• Because of a lack of new issues.

• Because of low Treasury yields.

• Due to high inflation rates.

• Due to high default rates.

What is a potential risk for triple B-rated bonds?

• They are immune to economic downturns.

• They might be upgraded to double A.

• They could be downgraded to high yield.

• They have no risk of default.

What challenge does the credit market face due to liquidity issues?

• There is too much liquidity.

• Liquidity issues lead to higher interest rates.

• Liquidity issues are irrelevant to credit markets.

• Liquidity issues make timing the market difficult.

What is the outlook for leveraged loans according to the discussion?

• Demand is decreasing significantly.

• There is no demand for leveraged loans.

• Demand remains strong despite uncertainties.

• Leveraged loans are being phased out.

What is the technical picture for credit going into the year-end?

• It is neutral with no clear direction.

• It is positive and supportive.

• It is negative and concerning.

• It is unpredictable and volatile.

Why is the credit market defensively positioned?

• To capitalize on high default rates.

• Because of uncertainties in the market.

• Due to expected rapid economic growth.

• To take advantage of high inflation.