Thought Capital

Credit Market Perspectives: Fundamentals Matter

Polen’s credit investment team discusses the evolution of the market in 2023 and what may lie in store for investors in the year ahead.


Across the credit spectrum, high yield bonds and leveraged loans currently offer some of the most compelling yields we have seen in years.

Despite a more constructive outlook, caution is warranted, as macroeconomic risks still loom on the horizon. Nevertheless, we believe these sectors will continue to remain attractive in the year ahead, as robust corporate fundamentals should result in the potential for active investors to generate attractive returns on a risk-adjusted basis.

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Key Questions Addressed
  • How did leveraged credit markets evolve in 2023?
  • What are the opportunities and risks on the horizon for investors?
  • How well can issuers withstand a scenario where economic conditions soften and interest rates remain higher for longer?

"In our view, the market offers a compelling window to lock in an attractive income level with further upside potential if the economic environment improves."


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Important Disclosures

This information is provided for illustrative purposes only. Opinions and views expressed constitute the judgment of Polen Capital as of November 2023 and may involve a number of assumptions and estimates which are not guaranteed, and are subject to change without notice or update. Although the information and any opinions or views given have been obtained from or based on sources believed to be reliable, no warranty or representation is made as to their correctness, completeness, or accuracy. 

Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice, including any forward-looking estimates or statements which are based on certain expectations and assumptions. The views and strategies described may not be suitable for all clients. 

This document does not identify all the risks (direct or indirect) or other considerations which might be material to you when entering any financial transaction. Past performance does not guarantee future results and profitable results cannot be guaranteed.