Show Notes
Europe’s government bond markets have faced growing pressure from higher energy prices, renewed inflation concerns, and increased scrutiny of public finances. The gap between French and German 10-year government bond yields recently reached its widest level since the 2011 European sovereign debt crisis as investors focused on France’s deficit and borrowing trajectory. Could the strains spread across the Eurozone, and where is the volatility creating opportunities? In this episode of Across the Pond, host Christopher Swann speaks with Frederick Mellors, Head of Global Fixed Income, about the growing divide between European sovereign borrowers, the European Central Bank’s policy dilemma, and the case for selectivity across government and corporate bonds.
More from UBS On-Air: Market Moves
With Election Day less than two weeks away, Shane drops by to share an assessment of how key Congressional races across the country are shaping up (and where donors are applying resources). We also cover recent reports of renewed trilateral talks amongst the US, Ukraine, Russia to end the conflict. Plus, a look at a new program initiative by the White House to identify and combat fraud. Featured is Shane Lieberman, Senior Governmental Affairs Advisor, Governmental Affairs US. Host: Daniel Cassidy
Oil prices continue to drift higher. US retail diesel prices are still near all-time highs, with no sign of mitigation from US administration policies. The news that the US is asking some of its diplomats to leave Saudi Arabia is not necessarily a positive signal about regional stability. Consumers should continue to consume despite the energy costs for the remainder of this year. Next year is when risks increase.
A quarterly check-up on the US macroeconomic environment, including consumer spending trends, the condition of the labor market, the road ahead for monetary policy, and the current landscape for deal-making. Featured is Paul Hsiao, Senior Asset Allocation Strategist Americas, UBS Chief Investment Office. Host: Daniel Cassidy
A wide-ranging conversation on the implications of the current macro environment and higher yields to fixed income return and positioning, including thoughts around where pockets of opportunity and concern exist. Featured are Lindsay Rosner, Managing Director and Head of Multi-Sector Investing within Goldman Sachs Asset Management (GSAM)’s Fixed Income and Liquidity Solutions business, and Leslie Falconio, Managing Director and Head of Taxable Fixed Income Strategy Americas with the UBS Chief Investment Office. Host: Daniel Cassidy
Oil prices rose above USD110 per barrel. Markets and politicians focus on round numbers, so while a small price increase is not directly important, the move does have potential consequences. The US administration is very sensitive to higher oil prices, and US retail diesel prices remain near their all-time highs. Investors’ concerns will likely focus on whether this will produce US concessions to Iran, or more aggressive central bank action.