Peter Cecchini, Director of Research at Axonic Capital, was featured in PitchBook’s recent analysis examining the potential return of stagflation and its impact on credit markets.
Cecchini observed that while headline inflation has eased from its 2022 highs, it remains above the Federal Reserve’s target even as employment growth slows, a combination reflecting characteristics of a stagflationary setting already in motion.
“Headline CPI at 3% stands in stark contrast to the slowdown in employment,” he said, noting that traditional CPI measures omit asset price inflation evident in equities, gold and bitcoin, which adds further complexity to the broader economic picture.
Axonic’s research continues to track how these pressures on growth and inflation interact across credit markets, shaping both near-term risks and longer-term valuation trends.
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