Credit Markets Provide Comfort for Equity Bulls

The video discusses the current state of market sentiment, highlighting a shift in tone in credit markets without the panic seen in equity markets. It explores investor behavior, noting a defensive stance in credit allocations. The dynamics between credit and equity markets are compared, emphasizing that credit markets remain orderly despite equity volatility. The resilience of credit markets is attributed to the good health of companies and low default rates, making credit an attractive option for yield-seeking investors.

What is the significance of inflation in the context of the current market situation?

Why might investors be taking a more defensive position in credit markets?