In our macro credit outlook published earlier this month, we argued for spreads to tighten over the course of next year but bullishness to peak around midyear when the excitement from ending the pandemic against the backdrop of strong policy support should create the conditions for the market to "overshoot". In addition to this, less supply and strong demand driven by a global reach for yield are supportive for credit risk appetite and despite more challenging valuations following the vaccine driven rally in November, we expect compression to continue to be the main theme through the first half of the year. As we move to the second half of the year however, we expect moderate consolidation as sights are set on a likely waning of stimulus in the following year, albeit with an ongoing recovery. This note goes into more detail on our outlook for the global leveraged finance market, with a particular focus on fundamentals, technicals and relative value.