Absolute Return Partners raises US recession fears despite trade war truce

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 – Founder and CIO Niels Clemen Jensen flags up potential liquidity squeeze – 
ARP founder and chief investment officer Niels Clemen Jensen is flagging up the risk of a US recession amidst a potential liquidity squeeze among lower-quality US corporates.

Jensen warns in ARP’s January note that tighter lending faced by lower-quality stocks in the US has put pressure on corporate debt levels lately, with many such companies turning to cash to run their businesses. As a result, corporate debt levels – which have been rising in recent years – could once again begin to fall, putting the squeeze on liquidity.


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