Debt Market Titans See Fiscal Risks and Rising Defaults
- Some headwinds loom as companies refinance at higher rates
- Arougheti sees a big global risk from deficit spending
Apollo’s James Zelter said the effects of tighter monetary policy from central banks still haven’t been fully felt, leaving him “skeptical” about a soft economic landing.
Source: BloombergApollo Global Management Inc.’s James Zelter is “skeptical” of an economic soft landing. Ares Management LLC co-founder Michael Arougheti is concerned about the risk of a fiscal accident. Defaults will rise in coming years as riskier debt comes due for refinancing, according to Joshua Easterly of Sixth Street Partners LLC and hedge fund manager Hamza Lemssouguer.
Credit markets may be stable as the global economy proves resilient, but some of the titans of the debt world told the Bloomberg Global Credit Forum in London this week that they see looming headwinds as the impact of higher interest rates slowly filters through to consumers and companies.