The overall global macroeconomic picture saw gradual improvement in 2017, aided by continued supportive monetary policy from central banks throughout key economic centers. We entered the year expecting volatility, in part due to the implications of the U.S. presidential election. However, lower volatility took hold as markets grew comfortable with a range of uncertain issues, including potential policy changes from Washington, China’s economy and the overall interest rate and commodity environment. We expect that 2018 may see an increase in volatility as the economic expansion in the U.S. enters its ninth year.1 While our base view is for a continuation of the current economic expansion, there is a higher degree of uncertainty beyond 2018. We are monitoring several key themes that each play an important role in the private equity and stressed credit universes.
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