Mike Crowell, VP, Director of Quantitative Research & Risk Analysis, Co-Director of Macro Strategies, Tom Fahey, VP, Senior Global Macro Strategist, Co-Director of Macro Strategies, Portfolio Manager and Craig Burelle, VP, Senior Macro Strategies Analyst at Loomis, Sayles & Company weigh in on the corporate earnings outlook, the current stage of the credit cycle, and key macroeconomic factors to consider.
While some worry that corporate earnings have nowhere to go but down, the Loomis Sayles research team points to signals that the credit cycle is actually still in an expansion phase. While corporate profits have slowed since the post shut-down surge in early 2021, the earnings outlook is still positive, explains the macro strategies team, citing profit as a critical piece to corporate health.
Due to strong bottom-up fundamentals, Burelle points to opportunities in global and U.S. Credit for excess positive returns over the next few months, with the potential for low downgrade and default expectations.
The Loomis, Sayles & Company Macro Strategies team also highlights opportunities in the following credit sectors: U.S. levered loan market, emerging market investment grade, and high yield corporate credit.
Founded in 1926, Loomis, Sayles & Company manages roughly $357.7 billion in assets under management and offers a wide range of investment solutions spanning traditional and alternative asset classes. Loomis, Sayles & Company is driven by a global macroeconomic perspective and insights driven by a deeply integrated research team.
To learn more, register and watch Loomis’ webcast: Have Corporate Earnings Reached a Peak?
Corporate health held up remarkably well through the worst of the pandemic and profits have surged in the aftermath. As companies contend with slowing growth momentum, inflationary pressure and fading fiscal and monetary support, some investors are wondering if it can last.
Join the Co-Directors of Loomis Sayles’ Macro Strategies team, Mike Crowell and Tom Fahey, and Senior Macro Strategies Analyst Craig Burelle as they pull back the curtain on corporate health. Learn how the team uses macroeconomic signals and quantitative models to help shape their views on corporate health and market valuations. The discussion will cover:
- Where we are in the credit cycle, and how that could influence borrowing and spending patterns, investor behavior, and asset prices
- The outlook for corporate profits and earnings
- What we can learn from quantitative models that measure risk premia and corporate health