UBS On-Air: Market Moves

After a week marked by rising bond yields and a steepening US yield curve, markets are weighing whether higher rates are a true signal or just noise for equities. We discuss why, despite the move in rates, the US equity bull market remains supported by strong global government spending, resilient consumer spending, and continued corporate investment in areas like AI. History shows that equity markets can withstand rate increases as long as growth stays solid. Tune in at the start of the trading week for this regular market outlook from Ulrike Hoffmann-Burchardi, Chief Investment Officer for the Americas and Global Head of Equities. Recorded on 17 May 2026.

Our conversation outlines the current landscape for fixed income investors, and where to locate opportunity within the asset class. We also touch on an outlook for monetary policy, rates and the macro environment. Featured are Adam Bloch, Portfolio Manager with Guggenheim Investments, and Leslie Falconio, Head of Taxable Fixed Income Strategy Americas with the UBS Chief Investment Office.

The China-US summit concluded. Much increasingly scarce jet fuel has been burned to produce nothing of real substance. China’s President Xi declared an agreement to keep trade ties stable. The two sides were unlikely to agree to anything different (no one would announce unstable trade ties). Stability is not a word that is normally associated with US trade policy over the past 15 months, lessening the statement’s value.

UK first quarter GDP was stronger than expected, led by the consumer. As elsewhere, consumers have reduced savings rates to afford higher oil prices. UK consumers can also adjust oil demand via flexible working and online retail. Politics is overshadowing economics, with a possible challenge to Prime Minister Starmer. Former deputy Labour leader Rayner was cleared of tax wrongdoing, increasing the chances of a challenge. However, any change of leadership is not likely to substantially change fiscal policy.

John Popp, Global Head and CIO, David Mechlin, Head of Liquid Credit, and Eileen Liu, Head of US Client Portfolio Management, discuss recent market developments within broadly syndicated loans, high yield bonds, and CLOs. Recorded on 04.22.2026