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What's current in credit?

Connor Fitzgerald, CFA, Fixed Income Portfolio Manager
October 2024
5 min view
2025-10-31
Archived info
Archived pieces remain available on the site. Please consider the publish date while reading these older pieces.
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The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only. 

In the first of a short video series, Fixed Income Portfolio Manager Connor Fitzgerald takes a look at what's current in credit. Given rather tight credit spread valuations, what is Connor's outlook for the next twelve months and where are the opportunities and risks now? 

Credit spread valuations remain tight. While Connor still sees opportunity, especially within specific sectors and companies, he believes it makes sense to take less credit risk in this environment, focusing more on investment-grade credit rather than high yield. 

Meanwhile, the economy is showing some signs of weakness, increasing the risk of a recession over the next twelve months, but, then again, could data continue to defy expectations?

In an environment of heightened geopolitical and political uncertainty, market volatility is likely. Investors could benefit, provided they are positioned to take advantage, and Connor will be paying particular attention to the trajectory of US deficit spending. Looking ahead, Connor also sees increased demand for power and the need to upgrade infrastructure as driving a potential structural growth story, which could create opportunities within the utilities and energy sectors.

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