Brexit: The dog that didn’t bite rate spread products – TDS
|Gennadiy Goldberg, US Rates Strategist at TDS, suggests that there is little evidence of a sustained hit to investor confidence in the rate spread product space, with the sector rapidly retracing its post-Brexit widening move.
Key Quotes
“We expect further performance to be supported by accommodative global central banks and a persistent global hunt for yield.
Despite tighter spreads in the sector, we continue to like carry and roll in the 4-5yr GSE/SSA space, further compression between 5yr GSE and SSA spreads, and swapping 2yr EUR SSAs into USD to enhance spread pickup.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.