Ten credit market warnings that signal long-term alpha potential

Will patience and discipline win the day?

The longest equity bull market since World War II led to high valuations and increased leverage.

The longest equity bull market since World War II led to high valuations and increased leverage. Now as the cycle turns, valuation multiples will inevitably contract and high debt levels will put pressure across the capital structure. The weak structure of the credit markets and reduced liquidity will likely lead to increased volatility, more downgrades, increased default rates, lower recoveries and stronger terms for new lenders in a post-coronavirus world. Olivier Maurice, managing partner of SYZ Capital, highlights ten warning signals that encapsulate the deteriorating fundamen...