Public Bonds Are Booming. Why Is Private Credit Flashing Distress?
1. Corporate bonds and high-grade securities trading at historic highs. 2. Federal Reserve's expected rate cuts could impact bank loans negatively. 3. Recent bankruptcies signal distress in credit markets, especially in automotive. 4. High-yield bonds priced richly, indicating potential investment risks. 5. Income investors may find safer opportunities in public credit markets.