"Real Yield" Debate on Credit: Own or Not Own?

Core Viewpoint - The discussion highlights concerns regarding corporate credit, particularly in light of the Federal Reserve's upcoming rate decision and potential changes in leadership at the Fed [1] Group 1: Federal Reserve and Interest Rates - Analysts express worries about the implications of the Fed's rate decision this week, indicating that it could significantly impact corporate credit markets [1] - The potential appointment of the next Fed chair is also a point of concern, as it may influence future monetary policy and interest rate strategies [1] Group 2: Corporate Credit Concerns - There are multiple factors contributing to anxiety in the credit market, including an oversupply of AI technologies, distress in private markets, and issues related to asset-backed securities [1] - Analysts point out that rising interest rates could exacerbate these issues, leading to further instability in corporate credit [1]