Record defense budgets, expanding industrial policy, and rising populism will compel major economies to run historically high deficits. Accompanying demands for low monetary policy rates erodes central banks’ inflation-fighting credibility.

Steeper yield curves, stretched market valuations, and reconfigured economies warrant diversified portfolios constructed for carry and income. 

The $7 trillion global AI-buildout threatens near-term over-investment risks. Yet, historical precedent suggests it will ultimately seed a productivity boost that determines growth trajectories, debt dynamics, and the future winners and losers across global industries and corporations. 

Expanding sources of capital can support borrowers’ credit profiles, and as risk and return profiles converge, investors will benefit from assessing relative value across the public and private credit continuum.