FAST FIVE: "There Is No Corner To Hide": $100 Billion Fund Manager Warns Credit Rout Is Just Starting

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More investment grade credits to follow.

That will slow growth — possibly by at least 1 percentage point after the second quarter — which along with rising input costs fueled by trade wars, should have a negative impact on corporate profits.

“The concern is that companies can get behind on that deleveraging path and if profits really do slow meaningfully over the next 12 to 18 months, you would think that more and more of those companies are going to get behind and be subject to potential downgrade risk or at least repricing risk,” Shoup said.

As General Electric Co. trades more like high yield, Anheuser-Busch is also a concern, Shoup said.

Diamonds in the Rough Shoup said he sees potential opportunities in energy pipeline and financial sector bonds.

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