Ask an investor how they’re feeling and they’re likely to echo the wary positivity of Larry David’s famous line on “Curb Your Enthusiasm”—“prett-ay, prett-ay, prett-ay good.”

Economic data remains strong, but consumer and business sentiment look increasingly shaky. Are we at a tipping point?

Macro sentiment around the path of interest rates, preference for risk-taking and the general economic outlook has had a remarkably similar impact on corporate credit in 2023 as it did in 1H 2022.

The correction in U.S. commercial real estate continues, with ultra-low interest rates and abundant liquidity coming to an abrupt end. The market now must come to grips with a world in which capital is more expensive.