Outlook for Credit

Apollo Chief Economist

Our latest credit market outlook is available here. Turbulence is likely to continue driven by inflation uncertainty, rising rates, and emerging fears of a hard landing.

Chart showing a record pullback in investment grade bonds
Source: Bloomberg, Apollo Chief Economist. Note: Index used LEGATRUU Index.
Source: Apollo Chief Economist
Chart showing a low level of corporate bonds from dealers
Source: Bloomberg, Apollo Chief Economist
Chart showing the number of negative yield corporate bonds is falling
Source: Bloomberg, Apollo Chief Economist
Chart showing a sharp rebound in the duration of high yield bonds
Source: Bloomberg, Apollo Chief Economist. Note: The measure used is modified duration, which measures the expected change in a bond’s price to a 1% change in interest rates.
Chart showing that rising interest rates is weighing on new issuance of high yield bonds
Source: S&P LCD, Apollo Chief Economist. Note: Data as of 31st March 2022.
Chart showing record low leverage in corporate America
Source: FRB, Haver Analytics, Apollo Chief Economist
Chart showing various holders of corporate debt
Source: FRB, Haver Analytics, Apollo Chief Economist

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