Credit cycle is past its peak but an immediate deterioration is unlikely

Morley's view of global credit remains fairly benign. Although we believe we are past the peak of t...

Morley's view of global credit remains fairly benign. Although we believe we are past the peak of the credit cycle in terms of improvements in fundamental credit quality as measured by financial ratios, systemic deterioration in the short term-to-medium term is unlikely. Single name (idiosyncratic) risk is a risk, not least because of the abundant liquidity being offered to the private equity sector. From a global economic perspective, growth is helping to support corporate earnings, increased shareholder returns are not being made at the expense of balance sheet quality. The US economy...