Looking back throughout 2023 so far, there has been a significant focus on the uncertainty of the US macroeconomic backdrop and its potential implications for the senior secured bank loan market. Paramount among these concerns are three key questions:
- How are underlying issuers able to handle inflation pressures and will they be able to pass along increased costs
to their consumers?
- Where are we in the interest rate cycle and how will this affect issuers?
- What effect will a potential recession have on issuers?
This piece provides our view on the current market environment and attempts to answer these critical questions.