Bloomberg Talks BlackRock Vice Chairman Philipp Hildebrand Talks Term Premiums Emerging in US Bonds
Jun 4, 2025
Philipp Hildebrand, Vice Chairman at BlackRock and former head of the Swiss National Bank, shares insights on the rising term premiums in U.S. bonds and the global economic landscape. He discusses how high debt loads are pressuring economies and the need for sustained growth to tackle these issues. Hildebrand also addresses the importance of maintaining confidence in U.S. sovereign credit amidst rising fiscal concerns following recent credit rating downgrades, and explores investment opportunities in infrastructure in response to geopolitical shifts.
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New Economic Policy Equilibrium Emerging
- We're transitioning from an old policy equilibrium to a new uncertain regime causing volatility.
- Rising U.S. bond term premiums reflect heightened debt and economic transition fears.
Delayed Economic Impact and Resilient Consumers
- Economic impacts from trade policy and tariffs take time to fully affect investment and spending.
- U.S. consumers remain resilient with cash ready to deploy when clarity emerges.
U.S. Sovereign Signature Is Key
- The sanctity of the U.S. sovereign signature is critical to global financial stability.
- U.S. bonds and the dollar anchor the world system; risking that threatens the entire system.