Barclays' Global Head of Credit and Fixed Income, Co-Head of Leveraged Finance Steven Oh pointed out that the basic scenario predicts that the United States is entering a rare non-recessionary rate-cutting cycle, which will support the performance of the credit market next year, especially leveraged finance assets. The Republican government will push for more growth-promoting policies, further supporting risk assets fundamentally, but may pose resistance for regions outside the United States. He mentioned that stimulative fiscal policy will intensify short-term inflation pressures, leading the Federal Reserve to scale back its accommodative policies and maintain yield curves at recent highs, which are expected to continue next year. Given the somewhat weak economic outlook in Europe, the European Central Bank will gradually cut interest rates, potentially strengthening the US dollar further. He believes that a balanced strategy should be adopted in portfolio risk allocation, continuing to focus on selected securities. He pointed out that the default rate for high-yield bonds has peaked in this cycle and is expected to decrease, while the default rate for leveraged loans (including debt management operations) is expected to remain near historical averages. Due to high total return rates, there is strong demand for Collateralized Loan Obligations (CLOs), supporting loan demand and market technicals. In terms of investment-grade credit and interest rates, any short-term weakness is expected to create buying opportunities. China, emerging markets (especially Mexico), and even Europe may face trade policy challenges, but the resulting sell-off may actually present buying opportunities for credit assets in neighboring regions, such as more widespread Asian investment-grade or high-yield bonds, as well as more comprehensive emerging market investment-grade bonds compared to developed markets.