Brexit: The dog that didn’t bite rate spread products – TDS

Sandeep Kanihama FXStreet Contributor

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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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