2020 a Better Year for Equities Than Credit: NatWest’s McCormick

The video discusses Jeffrey Gundlach's views on collateralized loan obligations (CLOs) and market trends for 2020. It highlights the potential risks and rewards of investing in higher-yielding assets, emphasizing the importance of understanding illiquidity risks. The analysis covers the evolution of credit markets, the impact of central bank liquidity, and the likelihood of a recession or default cycle. The speaker predicts a better year for equities compared to credit and bonds, given the expected reluctance of central banks to ease policy further.

What is the expected performance of equities compared to bonds in 2020?

What factors contributed to the strong performance of equities in 2019 despite a weak global manufacturing cycle?