GLOBAL CREDIT CONDITIONS REMAIN MIXED AMID UNEVEN GROWTH AND RISING GEOPOLITICAL RISKS Global credit conditions remain divided. The U.S. and Europe are exhibiting modest growth momentum while export-dependent Asia-Pacific countries and Latin America, particularly Brazil, continue their struggle with a decelerating China and its effects on commodity prices, currencies, capital flows, and future capital expenditures. In fact, we see China's economic slowdown and debt load as a continuing top global risk. Credit market volatility from when the Fed does hike rates, likely in the coming weeks, also remains a top global risk in that it could reduce corporate sector liquidity while amplifying any market stresses or setbacks. VOLATILITY RISK LINGERS AS NORTH AMERICA READIES ITSELF FOR LESS ACCOMMODATIVE CREDIT CONDITIONS
