In Revisiting the Global Credit Cycle, PGIM Fixed Income Managing Director and Senior Investment Officer Michael Collins explores how the new, pro-growth U.S. administration and rising global political risks could affect the current credit cycle.
Collins discusses how regulatory and tax policy changes could accelerate the credit cycle. That accerleration, along with renewed investor optimism, may sew the seeds for the next U.S. recession, perhaps within three to five years. And that means, he says in the paper, that the current market climate calls for increased attention to tail risk in fixed income portfolio construction.
The paper is Collins' second in-depth look at the global credit cycle, following 2016's exploration of the global credit cycle.
Read or dowload Revisiting the Global Credit Cycle. To hear Collins discuss his paper in a short video, click here. Want to talk to Mike Collins? Please contact Claire Currie.