Four questions for equity investors to consider on credit risk

Equity investors increasingly need the mindset of a corporate bond investor amid the regime shift in interest rates and inflation.

In the previous environment of cheap, easily-available debt, and low default risk, equity investors rewarded companies that delivered growth. And in an era where central bank actions were used to offset economic weakness, balance sheet resilience was less in focus.

But the regime shift in interest rates and inflation has changed things. Equity investors will increasingly have to think more like corporate bond investors. In this article we take the novel approach of looking at how much credit risk investors are taking on when they invest in different equity markets and sectors.

Click here to read more...