Credit: A continued bright outlook
Within credit, we seek to maximize income for our clients, looking for the greatest compensation for the risk being taken.
Looking ahead, we believe that robust corporate balance sheets, the lack of new issuance relative to demand for credit, low default expectations and high coupon income could potentially drive strong returns for credit investors.
Fixed income supply is expected to decline, with the majority of issuance coming from U.S. Treasuries. Fundamentals remain strong, and the attractiveness of credit should lead to positive demand in the market, supporting prices.
Markets face a limited supply of higher-yielding
assets in a low-yield world
$ in billions
Source: Gartner, company data, Credit Suisse estimates. As of April 12, 2012.
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High yield bonds are speculative, non-investment grade bonds that have higher risks of default or are subject to other adverse credit events, making them appropriate for high-risk investors only.
The views and strategies described herein may not be suitable for all investors. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument.