The Credit Edge by Bloomberg Intelligence Crossmark Says Investors Are Too Complacent About Market Risks
Oct 30, 2025
Victoria Fernandez, Chief Market Strategist at Crossmark Global Investments, discusses investor complacency amid recent debt-market turbulence. She highlights the risk of higher rates impacting smaller companies and lower-rated issuers facing refinancing challenges. The conversation shifts to credit opportunities related to AI infrastructure and the need for caution in evaluating popular tech valuations. Fernandez also emphasizes the importance of balancing responsible investing with performance, arguing that thoughtful credit strategies can minimize emerging risks while maintaining returns.
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Earnings Beat Through Cost Cuts
- Earnings have surprised mildly upside, helped by cost cuts rather than revenue strength.
- Fernandez says MAG7 CapEx plans will drive markets and are key to watch in upcoming reports.
Use Treasuries To Wait For Value
- Favor high-quality corporate bonds and increase Treasury allocations when spreads look expensive.
- Use short Treasuries or T-bills as placeholders until attractive corporate spreads reappear.
Private Credit Has Hoisted Bank Risk
- Credit risk has shifted from banks into private credit, increasing opacity and potential systemic vulnerability.
- Fernandez sees private credit as a reservoir of risk that could surface over time.