The global credit markets are expected to undergo a gradual transformation in 2025, moving away from the favorable conditions seen in 2024. The first half of the year should reflect the moderate growth, declining inflation, and lower interest rates of 2024. However, the second half may present more challenges, influenced by the diverse policy outcomes stemming from the U.S. election. As a result, we can anticipate slightly wider spreads, although this change won't happen overnight. Among investment options, leveraged loans are likely to deliver the best risk-adjusted returns, while agency mortgages will remain a strong alternative.
