LC Investment Playbook Monthly Update July 2023

Spot Light

• Markets Pricing in 5 Rate Cuts Next Year

‍ Market Updates

• US Yield Curve Most Inverted Since 80s

• US Corporate Bond Spreads Grinding Tighter

• US Default Rates inching higher

• Rates And Equities On Different Pages

• Price/Equity Ratio Back To Expensive Territories

• Equities & Bonds Yield Less Than Treasuries

• China in a Liquidity Trap

• Equity L/S Managers Have Lagged the Market

‍ ‍Recent Trade Ideas

• Our team's recent trade ideas on various Live positions.