• While the team believes that monetary and fiscal stimulus will help cushion the blow the national shutdown, near-term revenues and profits will certainly be impacted.
  • Predicting the end of this period of reduced global economic activity – and forecasting the end of the peak level in credit spreads – will be difficult. Loomis Sayles utilizes proprietary credit risk premium models that offer the team perspectives on historical spread valuations after considering downgrade losses, and estimates of probable positive future excess returns.
  • The team believes that a consistent focus on fundamental value over a credit cycle in conjunction with dynamic active management can help enable them to capitalize on pricing anomalies and capture the investment grade credit risk premium.