In our annual look at the state of global credit markets, Institute Chairman Mike Milken and leading players will discuss a rapidly shifting landscape. This year, some observers believe we are in the early stages of the Great Rotation - a broad shift in investor preference from debt to equity that would reverse the cycle begun in 2009. Quantitative easing, a favored tool of central banks in recent years, can't last forever. Indeed, the U.S. Federal Reserve balance sheet recently crossed the $3-trillion mark, more than three times pre-crisis levels. What has that thumb on the scale done for credit quality, particularly in mortgage markets, where the Fed owns $1 trillion in debt? As central banks slow their purchasing, will corporate borrowers feel the side effects? Should we worry about the return of covenant-lite loans? Are early signs of rising default rates about to change the picture for credit availability? And what role will towering sovereign-debt levels play in fixed-income markets this year?
Chief Risk Officer, Moody's Corporation; Chief Credit Officer, Moody's Investors Service
Chairman of the Executive Committee, Ares Management LLC
Managing Partner and Chief Investment Officer, GoldenTree Asset Management
Chief Investment Officer, Brevan Howard Credit Catalysts Fund