2023 outlook for credit markets

For the first time in years, credit markets potentially offer a way to achieve long-term return objectives via income alone, without the drawdown risk inherent in equity markets. In addition, from an asset allocation perspective, the traditional role of fixed income as a diversifying asset has been restored, with the potential for meaningful returns from the asset class if central banks were to ease policy in a future downturn. Two factors could create highly differentiated outlooks at an issuer level Until there is greater confidence that inflation is under control and that the gro...