Is the Bond Market Poised for a Major Shift?

On this episode of “Credit Matters,” Shankar Ramakrishnan and Bruce Clark recap a volatile week in rates and credit as Middle East conflict headlines pushed oil prices higher, helping stall US investment grade issuance after a busy start to the week.Bruce outlines a dramatic repricing of global central bank expectations, with Europe and the UK turning notably more hawkish while US futures shift from pricing multiple cuts to a small chance of a hike by year-end. Guest Meghan Robson, Head of US Credit Strategy at BNP, says credit’s reaction has been muted as Powell stayed data-dependent, but investors are moving away from the “several cuts” narrative; she notes IG spreads have widened about 20bp since January though fundamentals remain mid-cycle.Meghan discusses positioning, preferred opportunities in IG and select high yield cyclicals, AI-driven software sentiment risk versus fundamentals, private credit concerns tied to leverage and transparency, key red flags (earnings declines and asset coverage), and practical hedging tools like CDX and options.Get in touch: For more information about how IGM's solutions can support your business, visit our website or contact us: https://informaconnect.com/igm/Follow us: Keep up to date with all the latest from IGM by following us on LinkedIn: https://www.linkedin.com/company/informa-global-markets