Credit and Debt Monitor - 1.31.2020

• The decline in the strength of the Q4 narrative of a risk of “collapse” in credit markets continued in January.
• Uniquely among our macronarratives, cohesion actually dropped for debt and credit market narratives.
• We think that the heightened attention on the coronavirus outbreak and generally positive news about the China Trade War were largely absent from the leveraged loan and private credit-focused discussions that dominated in late Q3 and early Q4.
• We don’t think that these markets are as mass media-driven as equity markets and asset allocation / macro - so while we would generally argue that this has created a complacent narrative, we don’t counsel establishing any active positions on that basis.

Narrative Map

Narrative Sentiment Map

Narrative Attention

Narrative Cohesion

Fiat News Index

Narrative Sentiment