April, 2016

What’s Inside

• The asset class has returned 10% over the past two months, driven by a variety of factors. In particular, improvement in commodity prices, global central bank guidance, and positive technicals.
• Credit spreads remain wide even after the recent surge.
• The U.S. economy has been resilient, but faces headwinds, and the path of least resistance is for lower GDP. Weakness abroad, deflationary pressures of a stronger U.S. dollar, and deteriorating corporate outlooks all add to heightened risk.

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