The most popular question Hedgeye CEO Keith McCullough has been asked in meetings with institutional investors recently?
“What is the number one thing that changes credit spreads?” The answer is very simple: The cycle.
“When we start going towards Quad 4 (i.e. year-over-year Growth and Inflation starts slowing), people are really in tune with what we’re saying about the credit cycle,” McCullough explains in the clip above. As McCullough explains, a slowing U.S. economy is not going to be good for the $2.4 trillion in BBB-rated debt.
Looking to read more about the history of debt markets? To get quickly up-to-speed on all things credit, McCullough suggests David Graeber’s book "Debt: The First 5,000 Years."
Watch the full clip above for more.