BlackRock’s Lynam Calls Early Credit Drop a ‘Healthy Correction’
- Market recalibrates after rally made spreads ‘unsustainable’
- She sees 2024 being all about cost of capital and refinancing
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The corporate credit market is experiencing a “healthy correction” by starting 2024 way off its December rally, according to BlackRock’s Amanda Lynam.
Global credit markets wiped out about $240 billion of value so far this week, one of the worst cross-asset selloffs to greet a new year in decades. The selloff is calling into question the outlook for a so-called Goldilocks scenario, with many Wall Street economists having anticipated economic data will show enough growth to sustain financial markets without reigniting inflation.