Allspring Manager: Economic Outlook Summary has a greater impact on credit markets

According to Kingshin data, Maulik Bhansali, senior portfolio manager at Allspring Global Investments, said the credit market was more affected by the Economic Outlook Summary, rather than a 25 basis point cut. Data shows that there may be two interest rate cuts this year, and GDP growth expectations have increased slightly. Despite increased labor market concerns, unemployment is expected to decline slightly, and the economy may continue to have a soft landing, which is beneficial to the credit market. Yields are still attractive, especially those at the far side of the curve. As the interest rate cut cycle restarts and the stock market hits a new high, M&A activities with rising leverage may accelerate, which needs to attract the attention of credit investors.