Corporate Credit Outlook: Higher Interest Rates Challenge Lower-Quality Borrowers

This podcast episode explores experts' predictions on the credit markets during a period of economic uncertainty. The speakers predict wider spreads and higher default rates, especially in lower quality segments, and emphasize the importance of selective credit choices. They favor single A's over triple B's, shortening portfolio duration, and focusing on higher quality borrowers. The speakers also discuss the potential impact of higher interest rates on debt affordability and the importance of considering leverage and rate sensitivity in loan structures.