Equity and credit markets have thus far taken lackluster earnings results and lower expectations in stride, but we think this could change if confidence readings drop further.

While slower earnings growth is a broad headwind for both corporate debt and equities, it also tends to increase performance dispersion.

Financial media and investors have been focusing on the BBB segment of the U.S. investment grade (IG) corporate bond market this year. Careful credit selection and active portfolio management are crucial to managing risks and seeking returns in this large market segment.