L&G's Carrick fires credit market warning

Financial markets have given up expecting the Federal Reserve to cut interest rates and have also accepted that the Bank of England and the ECB will raise rates further, which has contributed to the global sell-off in bonds, claims Carrick. Although bullish emerging markets and narrow credit spreads should ensure global growth continues, Carrick believes that the fundamentals for credit markets are deteriorating. Carrick opines that the broader credit market is in danger of a contagion effect as loss-making funds are forced to sell illiquid assets. While corporate debt is increasin...