Vanguard’s Credit Chief Sees Second-Half Recession Hitting Corporate Debt
- The investment manager is ‘very defensive’ on high yield
- Sees opportunity in high-grade bank debt with short maturity
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The US economy is at risk of tipping into a recession in the second half of the year, derailing the corporate debt rally, according to Chris Alwine, global head of credit at Vanguard.
“We can see credit perform OK — not extraordinary outperformance — in the first half of the year,” Alwine said in an interview with Bloomberg Intelligence’s Credit Edge podcast. “If we look beyond that, our concerns begin to grow.”