Research report

COVID-19 impact on corporate credit markets

Recent market volatility points to heightened uncertainty surrounding the COVID-19 outbreak.

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February 28, 2020 | 5 minute read

News surrounding the coronavirus has dominated headlines in recent weeks and the outbreak has now spread to as many as 50 countries, stoking fears of a global pandemic. Markets, which had largely remained complacent up to this point, now seem infected as stocks have tumbled for 6 days straight.

While the future outcome of the virus is still unknown, in this piece we examine the impact that COVID-19 has had to date on credit markets and the best course of action we see for investors moving forward.

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.

Robert Hoffman, CFA

Managing Director, Credit Wealth Solutions

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