BlackRock's Keenan Favors Credit Markets in the Short Term

The transcript discusses the economic reopening and its impact on portfolio risk management. It highlights the cyclical nature of economic data and the expected acceleration in demand due to pent-up consumption trends. The conversation also covers the significant role of monetary and fiscal stimulus in shaping the short-term economic outlook. Long-term challenges include a more normalized recession and the potential failure of some businesses and municipalities. The discussion concludes with an analysis of the credit markets, emphasizing the perceived risk and opportunities in high yield and leveraged loan markets.

What is a key consideration when managing portfolio risk as the economy reopens?

• The influence of political changes

• The impact of new technology

• The cyclical nature of economic data

• The role of international trade

What is expected in the short term due to monetary and fiscal stimulus?

• A decrease in consumer spending

• A rise in unemployment rates

• A decline in stock market performance

• Positive economic data trends

How is the recession expected to compare to 2019?

• It will be more severe

• It will be more normalized

• It will be less impactful

• It will be shorter

What is the outlook for high yield and leveraged loan markets?

• They are expected to decline

• They are pricing in high default rates

• They are expected to remain stable

• They are unaffected by economic changes

What is the perspective on risk in the credit markets?

• Risk is being embraced

• Risk is being minimized

• Risk is being ignored

• Risk is being avoided