Thinking about the ‘day-after’ repricing

Ian is joined this week by Mike Cloherty, and the duo begin the show by discussing what to expect from the bond market when Middle East tension dissipates. The mechanics of the repricing are well understood, though Mike sees more downside risk to the very front-end given the current starting point of Fed expectations. Ian discusses why the CAD rates market has gotten so expensive, and why the repricing in the short-end has limits. The pair talk about CIBC’s new interest rate forecast and the risks around it, in addition to an updated view on the performance of swap spreads going forward. Mike discusses recent SOFR trends, and the show finishes off with a pop-quiz. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.