May 23, 2019 – Financial system stress comprises an important set of variables that we continually track. While not always indicative of where or when the next recession will start, we do believe it helps us find pockets of the market that may be more prone to breaking down. Importantly, the Federal Reserve now produces a biannual study, named the “Financial Stability Report,” and its second issue was released two weeks ago.
September 22, 2017— We are occasionally asked if we view the bank loan (also leveraged loan) space as attractive. While we are not addressing complete market credit conditions here, we can comment on some unique aspects of the bank loan market that impact our view.This asset class is composed of loans traditionally made to high-yield, or non-investment-grade borrowers.