For about a decade, several factors have driven a significant and sustained expansion in the US corporate credit market. Like many areas of the economy, corporates took advantage of low borrowing rates and issued new bonds at a record pace. All-time highs in investment grade credit and leveraged loan issuance came in 2017 as the economy continued to show solid growth and M&A picked up. But has a decade of growth in US corporate credit ballooned to the point of potentially bursting?

Within the global credit landscape, there are two areas that have gained attention as the potential harbingers of the next market downturn: triple BBB rated bonds and leveraged loans/collateralized loan obligations, or CLOs. Do these areas of credit pose bigger macro challenges that could send the economy into a tailspin, or will there be isolated consequences within credit that show up after another catalyst causes the market to sell off?

In episode seven of The Flip Side podcast series, Head of Credit Research Brad Rogoff and Head of US Credit Strategy Shobhit Gupta examine recent developments in these markets and debate whether investors should be concerned about US corporate credit.