“Global central banks are assessing the extent of the stagflationary shock. They want to keep market and consumer inflation expectations in check, while also retaining the flexibility to respond to any shock to growth and consumption. This is what we call disciplined optionality.”
Recent defaults have raised questions about the state of the credit cycle. In part 2 of the private credit roundtable series, our investors discuss whether these are early warning signs or simply pockets of dislocation.