It's Not Over Yet

By Bernhard Eschweiler, PhD 12.2022 — 2 minute read

• Fed tightening expected to slow soon and then pause in early 2023
• …but adverse economic impact to be felt for some time longer
• Tail credits remain vulnerable yet opportunities have emerged, as well

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The Big Housing Correction

By Bernhard Eschweiler, PhD 09.2022 — 2 minute read

• The plunge in home sales is caused by much deteriorated affordability
• …and not, in our view, a sign of a bursting housing bubble
• The main risk for housing would be a deep and protracted recession
• The surge in house prices is likely to force more households to rent

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Corporates under pressure

By Bernhard Eschweiler, PhD 06.2022 — 2 minute read

• Corporate leverage is elevated
• …creating risks given rising margin and interest rate pressures
• Leveraged loans in trade-off between duration and credit risks
• CLOs offer fundamental value amid rising leveraged loan default risk

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Households less vulnerable to recession risk than businesses

By Bernhard Eschweiler, PhD 05.2022 — 2 minute read

• Recession is unlikely in 2022 but risk is rising in 2023…
• …as monetary and operating conditions tighten
• Household and business credit fundamentals to diverge…
• …making credit selection key

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Corporate Bond and CLO Spreads to Diverge

By Bernhard Eschweiler, PhD 02.2022 — 2 minute read

• Fed tightening is expected to …
• ... widen corporate bond spreads …
• … and tighten CLO spreads
• Main risk is financial and economic instability

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Stubbornly Low Treasury Yields

By Bernhard Eschweiler, PhD 02.2022 — 2 minute read

• Treasury yields are low given imminent Fed tightening
• We expect Treasury yields to rise but probably not out of the low range

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Carbon Neutral for the Second Year

By Dan Curry, President and Chief ESG Integration Officer 01.2022
— 1 minute read

ZAIS is a signatory to the United Nations-Supported Principles for Responsible Investment and supports the companion Sustainable Development Goals.  As in 2019, ZAIS used a third-party vendor software to calculate the carbon footprint of our operation. ZAIS continues to purchase carbon offsets via Carbonfund.org. Our colleagues have picked two projects to help fund this year.

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