Heads and Tails in the Credit Markets
This week’s commentary – Heads and Tails – was inspired by the discovery of a two headed snake in the Pine Barrens of New Jersey. We’re not sure if this is a good omen or a bad one. But there’s evidence of both in the credit markets today.
Public markets remain buoyed by the prospect of trade talks with China, as evidenced by near-record highs on the major equity indices. On the other hand, generally lower interest rates seem to signal both another Fed rate cut – and an economic slowdown – could be around the corner.
Like our NJ snake, nicknamed Double Dave, investors are of two minds: Stick with the search for yield, even if that brings greater risk? Or go to cash and wait until things becomes a bit clearer…
▶︎ Read Sept 9 2019 newsletter: here
Latest news
US leveraged loans returns turn negative in October
The Bloomberg US Leveraged Loan Index (Ticker: LOAN) has returned -0.26% this month through October 21, reducing its year-to-date return…
M&A activity begins to tick upward
In the third quarter of 2026, acquisition-linked loan volume across North America and Europe reached about $47 billion, up from $30.6 billion in Q2 and $29.5 billion a year ago.
