Waves of government stimulus have stabilized corporate loan portfolios, but IACPM members voice concern about possible long-term impact of the mammoth amount of liquidity.
Economic Stimulus Important but Vaccine Paramount
Fiscal stimulus has played a key role in settling markets and the economy, and while credit default and spread forecasts remain negative, credit conditions seem to be stabilizing and ‘Worst Case’ may not happen.
Credit Conditions May Not Worsen in Near Future
There is certainly no shortage of challenges facing global financial markets but, for the moment, many appear to be on the back burner.