BBB is junk

700 billion of refis in corporate America coming in 2019. Per recent Barron’s article (1/12/19), should bring significant downgrades in corporate credit. We believe downgrades roll down: i.e. BBB to BB+, BB+ to BB, etc. We believe we retrace the trump trade in 2019. We are looking for CLO/Floating Rate spreads to hit 2016 levels: