Rising Default Rate May be Difficult to Cap

Also Interesting

• Quick take: Austerity deferred in the UK
• Global Economic Perspective
• Are we heading for a bear market?

Weekly Market Outlook

Because of its acute sensitivity to the business-cycle and corporate earnings, the high-yield credit market will have more to worry about this year. For starters, domestic expenditures will no longer receive an extraordinary lift from federal tax cuts. Worse, the limitations placed on the deduction of state and local income and property taxes from federal income taxes will be felt once residents of high-tax states file their 2018 tax returns in early 2019.