Chris Neumeyer
In the months since the COVID-19 pandemic jolted the global economy, corporate bond markets have evolved into a story of “haves” and “have nots.” Credit sold off across the board following economic shutdowns and liquidity shortages. But the subsequent recovery has primarily favored borrowers with large capitalizations, pandemic-resistant businesses, and collateral to pledge in exchange for liquidity to survive. Credits of many smaller-cap and private companies have been and will continue to be left behind. As they burn through their current liquidity, we believe they will ultimately face an environment marked by limited access to liquidity amid uncertainty about economic recovery.