Industrial Outlook: 2024 Credit Outlook
Industrial credit quality is exposed to a potential economic recession, having already experienced 12 months of contraction based on the PMI index. Capital goods manufactures' streak of margin progression may come to an end, while M&A opportunities appear poised to rise from a low base. Our scenario analysis now incorporates both a soft and hard landings, which help drive our relative value views. General Electric, 3M, Honeywell and Regal Rexnord are among the 20 industrials discussed in our outlook video.