Points of view : one question, three experts – Credit Market

In our view, there is a major disconnection between the degree of extreme market pessimism and the fundamentals that, if they deteriorate, lead us to expect a much less catastrophic trend. Indeed, we expect credit fundamentals within corporate and financial institutions segment to continue to erode over the next period, but not fall off a cliff, thanks to a sound starting point. Many bad news is already incorporating the credit market valuations which seem to be cheap, given the fundamentals and flaws they infer. These levels should be placed in the context of a near recession (estimated around Q4 2022/Q1 2023), which is more of a soft landing than a hard landing of economic activity.