Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group
As we enter 2018, the macro environment continues to remain supportive for credit markets generally. However, the prolonged stretch of low volatility has driven yield-hungry investors to overlook potential risks. Against this backdrop, we believe the most significant risk in the loan market resides in CCC and below-rated loans, as any unexpected uptick in volatility skews risk significantly to the downside.
Matt Toms, CFA, CIO, Fixed Income
The macro environment remains supportive for fixed income markets. However, with full valuations and diminished monetary policy support, the margin for error is razor thin as investors identify potential risks. Voya Investment Management's CIO of Fixed Income, Matt Toms, CFA breaks down the major themes of 2018 and discusses the key market trends that are likely to lead to a return of volatility.