Sentiment that COVID-19 will be short-lived is shifting as new cases emerge from states opening up.
COVID-related emergency room visits are rising after bottoming out a month ago.
The number of new COVID-19 cases has leveled off, but outside NYC the trend is less favorable.
Valuations of middle market private credit are less correlated to other public asset classes.
Over the past decade the yield on middle market senior secured loans has outpaced that of many other asset classes.
Since April 1, roughly $35 billion of cash has poured into high-yield fund accounts.
New issue high-yield bond yields are up sharply since COVID-19 hit in March.
High-yield bond issuance cratered with the onset of COVID-19 in March, then rebounded sharply in April.
It took nine years to add 21 million US workers to payrolls; COVID-19 wiped them out in two months.
The onset of COVID-19 also signaled the expansion’s end; 1Q GDP slumped 4.8%, worst since 2008.