The document discusses the US credit market's challenges in 2015, focusing on high commodity exposure and emerging market risks. It highlights the potential for rising credit losses, the impact of the commodity super-cycle belief, and the risks of debt write-downs. The document outlines three primary risks: a potential turnaround in the Chinese economy, equities diverging from commodities, and more central bank stimulus outside the US. It predicts moderate increases in ex-energy defaults and continued pressure on HY spreads, while viewing IG as a more attractive alternative. The document also notes the demand for 'safe yield' from overseas investors, particularly in Asia.
documents/vol00010-efta01458981-pdf.pdf
{"title":"World Outlook 2016: Managing with less liquidity","key_people":["Deutsche Bank AG/London"],"document_date":"2015-12-08","document_type":"correspondence","key_locations":["US","China","Europe","Asia"],"key_organizations":["Deutsche Bank"]}