Credit conditions remain favorable for most borrowers, as government support underpins market liquidity, and coronavirus vaccine rollouts offer optimism that an end to the pandemic is in sight. U.S. GDP is set to grow 6.5% this year—the most since 1984. With even low-quality borrowers able to tap credit markets at welcoming rates, we see signs that investors aren’t being adequately rewarded for the risks they’re taking and may soon demand better yields—all against the backdrop of record-high debt.