Morgan Stanley's Tirupattur Sees Fewer Corporate Defaults in Next Recession

The video discusses the potential for an economic downturn, comparing it to past recessions like the financial crisis and COVID recession. It suggests that the upcoming recession may be less severe, with muted corporate defaults due to stronger balance sheets. The speaker advises investing in high-quality bonds, particularly those that have been undervalued due to recent duration moves.

What is the expected nature of the upcoming recession compared to the last two recessions?

• It will be deeper and more severe.

• It will be relatively shallow.

• It will have a dramatic spike in corporate defaults.

• It will be similar to the financial crisis.

How does the speaker compare the upcoming recession to those in the 70s and 80s?

• It will have a higher impact on household balance sheets.

• It will be similar with muted corporate defaults.

• It will have more dramatic spikes in defaults.

• It will be more severe than the 70s and 80s.

What type of investments does the speaker suggest focusing on during the upcoming recession?

• High-quality investment-grade bonds

• Low-quality high-yield bonds

• Real estate investments

• Short-term loans

Which type of bonds does the speaker recommend avoiding?

• High-quality high-yield bonds

• Investment-grade bonds

• Lower dollar priced bonds

• Loans

What is the speaker's expectation regarding duration moves in the bond market?

• Duration moves will increase.

• No significant moves are expected.

• Dramatic moves are expected.

• Duration moves will decrease.