Lara Rhame, a managing director, and Rob Hoffman, a managing director of investment research at FS Investments, have released their second-quarter corporate credit market outlook report.
They share their insights into the ongoing challenges of handling inflation and the Fed rate hike cycle. The report highlights how market conditions forewarn a potential recession, and how investors can balance growth amid rising uncertainty.
Highlights include:
An economic growth projection of 3 percent in 2022, as business investment has room to ramp up through capital spending and inventory restocking.
While inflation may have peaked in March, high food and energy prices will stress households and keep the Fed on a hawkish path.
Markets already have repriced for a storm, despite solid fundamentals.
To read the full report, click