Key Observations & Outlook

▶ The avoidance of a more significant economic downturn has been enough to propel the equity markets higher

▶ Labor markets are still tight and remain a bright spot for the economy

▶ Oil prices have risen 20% over the past 5 weeks, which could potentially trigger a resurgence of inflation in the coming months

▶ Bank survey data continues to point toward tighter credit conditions across most lending categories at banks

▶ High yield bonds performed well in July as high yield credit spreads tightened to levels not seen since April of 2022, reflecting investor perception of declining financial markets risk