Taryn Leonard and Melissa Ricco, Co-Heads of Barings’ Structured Credit Investment Team, discuss the recent loan market weakness, and how technical pressures are creating value opportunities in the CLO market.
Global growth outlooks are the weakest since the recession and the U.S.-China trade deal may be delayed through the new year. Meanwhile the FOMC is likely to remain on hold in December.
U.S. trade trouble continues with a “Phase One Deal” less than imminent, the IEA asserts how U.S. shale-oil production will reshape global energy markets and don’t hold your breath on a December Fed rate cut.
So far, they seem to work in practice, just not in theory. Negative yields seem to have helped extend the cycle, but they carry risks if they linger for too long.
In this Q&A, Barings’ Head of Global Sovereign Debt and Currencies, Ricardo Adroguè, addresses the many risks facing the global economy—specifically China, Argentina and the Middle East—and explains why a skilled active manager is critical to performance.