UBS maintains an 'Attractive' rating on investment grade bonds, driven by compelling yield levels and solid corporate fundamentals. Despite heavy supply from hyperscalers for AI investment, strong demand continues to underpin the asset class.
Key Takeaways
- 1.UBS holds an Attractive view on investment grade bonds, citing appealing yield levels (4.9% in USD and 3.6% in EUR).
- 2.Investor demand remains robust due to solid fundamentals and resilient corporate earnings, despite high levels of supply from hyperscalers funding AI capex.
Table of Contents
- Investment grade
- Global Asset Class Preference Attractive
- Central scenario
- Upside scenario
- Downside scenario
- Global asset class preferences definitions
- Appendix
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Antoine GeillerFrederick MellorsCarolina Corvalan
Securities
Bloomberg US Intermediate Corporate IndexBloomberg Euro Aggregate Corporate Index
Themes
AI Infrastructure CapexYield Cushion
Regions
North AmericaEuropeUnited StatesChina