The UK pension upheaval last year and more recent US regional bank stress may be just the beginning of rolling crises that end up in a global credit crunch, according to Janus Henderson Group Plc.
The two episodes in a world of elevated interest rates may lead to constrained credit, increasing defaults and crimped corporate profits, said David Elms, who manages $3 billion across 11 funds as head of diversified alternative strategies for the money manager in London. “I would be nervous about credit given the benign credit landscape we’ve had in the past 15 years.”
Read More : Janus Henderson Warns of Growing Risk of Credit Crunch amid Fed Rate Hikes