Posted 3/15/2024, 4:58:00 PM
Private Credit Delaying Recession But Risks Remain, Strategist Warns
- The $1.7 trillion private credit market has delayed a recession, per Tony Dwyer, chief market strategist at Canaccord Genuity
- But Dwyer still believes a recession is possible due to ongoing manufacturing sector weakness
- The inverted yield curve, negative money supply growth, contracting manufacturing activity point to recession
- Private credit has allowed struggling companies to access capital and avoid failure
- Inaccurate labor data is a risk if the Fed keeps policy tight based on overstated jobs reports