US Credit: The Case for American Exceptionalism
In our view, the vast American market provides a wide array of investment opportunities across various sectors, industries and credit qualities, allowing investors to build well-diversified portfolios that can mitigate risk. The high liquidity in the US credit market means that investors can easily buy and sell securities, enhancing their ability to respond to market changes and capitalize on emerging opportunities. Additionally, the depth and breadth of the market enable more accurate pricing and better access to information, which can lead to more informed investment decisions. Overall, we think these factors contribute to a more stable and potentially higher-yielding investment environment for credit investors.
An economically challenging year for much of the world has seen the notion of ‘There is no alternative’ (TINA) to the US gain significant traction. Investors have flocked to US assets not only because of attractive fundamentals, but because global alternatives appear unappealing. No narrative lasts forever, and TINA is no exception – what could change?
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