Stuart Chapman, director in the investment team at Serone Capital Management, speaks on CNBC

Please click on the picture below to access part of this interview (you will be directed to the CNBC website).

Main points:

 

Structured credit can provide opportunity through the cycle

Diversification e.g. by sector, geography, etc can insulate from shocks

 

Trade war will play out over quarters

US and China at loggerheads, but less so Europe

Potentially inflationary for US, but excess capacity that may flow to Europe dis-inflationary

 

Credit market is forward looking

Our opinion is that the US is later cycle than Europe by several years

US rates rising when leverage already above averages (in high yield)

In Europe growth is lower, but underwriting standards higher

European high yield leverage at 2005 levels

ECB’s path to tightening dependent on inflation, and supporting measures and options still on the table

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