Capital cycle: US leveraged loans at fracture point - VP Thematic
> Investing alongside the capital cycle would have shielded investors from 2022’s bear market.
> The capital cycle is about competition: too much investment in an industry destroys future shareholder returns.
> Capital cycles are also powerful predictors of HY credit returns.
> Use the capital cycle to 1) avoid credit events in industries with intense competition, and 2) aggressively buy capital-scarce companies as the business cycle turns up.
> Leveraged loans are at the center of a major credit re-pricing.
> The capital cycle is about competition: too much investment in an industry destroys future shareholder returns.
> Capital cycles are also powerful predictors of HY credit returns.
> Use the capital cycle to 1) avoid credit events in industries with intense competition, and 2) aggressively buy capital-scarce companies as the business cycle turns up.
> Leveraged loans are at the center of a major credit re-pricing.
ThematicEquity SectorEquityEquity RegionnoramFixed IncomeDM