Morgan Stanley's Sankaran: US Credit Spreads Not Showing Recession Fears

The video discusses the current state of the credit market, focusing on high yield spreads and their implications for recession predictions. It highlights the improved quality of the high yield market and the lack of imminent maturity walls. The discussion also covers the leveraged loan complex, emphasizing the potential for gradual deterioration in fundamentals due to higher rates, which could lead to downgrades in the future.

What factors are contributing to the current state of the high yield credit market?

How does the current spread in high yield compare to historical recession thresholds?

What is the significance of the maturity wall in relation to the credit market's future?

What concerns are raised regarding over-leveraged capital structures in the context of higher funding costs?

In what ways might the fundamentals of the credit market deteriorate over time?