FICC Focus

In this discussion, James Grant, founder of Grant’s Interest Rate Observer, shares his insights on the implications of recent U.S. tariffs and their dramatic impact on financial markets. He teams up with Ira Jersey and Will Hoffman to explore the risks for bondholders amid rising inflation and discuss current economic uncertainties. The trio delves into the significant influence of U.S. trade policies on national security and reflects on historical protectionist ideas that resonate today. They also navigate the evolving dynamics of cryptocurrency and its potential threats to market stability.

Maeva Cousin, Bloomberg Economics' Chief Trade and Climate Economist, dives deep into the intricacies of US tariffs and their ripple effects. She discusses recent tariff hikes on imports from countries like China and the potential repercussions on global trade relations. Maeva highlights the risks of stagflation and increased inflation for the US economy, as well as how these developments might affect the Japanese yen, pointing to its safe-haven status during tumultuous times. A compelling analysis of how trade tensions shape forex markets!

Ricardo Gennari, managing director and head of US Real Estate Credit at Leste Group, dives into the evolving landscape of real estate private credit. He discusses how rising interest rates are reshaping lending strategies and the need for liquidity maintenance. Gennari highlights the burgeoning investments in data centers and the importance of energy supply in this sector. With consolidation trends in the private credit industry, he sheds light on opportunities for niche players amidst economic challenges, making a compelling case for intelligent investment strategies.

Jeffrey Rosenberg, Managing Director and Senior Portfolio Manager at BlackRock Systematic Fixed Income, dives deep into systematic investing and its transformative impact on credit markets. He discusses the evolution of strategies that drive returns, focusing on the rise of multistrat hedge funds and the importance of adapting approaches during downturns. Rosenberg highlights the innovative use of the Merton model in credit derivatives and the significance of blending automated models with human oversight for optimized performance.

There has been growth in the product offering in the crypto options market, which often has a right-tail skew and exhibits spot-up, vol-up dynamics. This edition of All Options Considered is the recording of part of the Bloomberg Volatility Forum 2025 held in London on March 18. The panel discussion on the crypto adoption curve was moderated by Anna Edwards, Boomberg News' Anchor, with Carol Alexander, Professor of Finance, University of Sussex and Exponential Science Foundation, Catherine Clay, Global Head of Derivatives, Cboe Global Markets, and James Harris, CCO, Zodia Custody.

A comfortable environment of US exceptionalism has been replaced by noise around tariff risks, the EU’s fiscal bazooka and US policy pivots, which has supported cross-asset volatility. This edition of All Options Considered is the recording of part of the Bloomberg Volatility Forum 2025 held in London on March 18. Bloomberg Intelligence’s chief global derivatives strategist Tanvir Sandhu gave an opening speech on macro and volatility across markets. A panel discussion on the options market was moderated by Noel Hebert, BI’s global director of FICC strategy, with Dennis Davitt, CEO at Millbank Dartmoor Portsmouth, Pierre-Henri de Monts de Savasse, senior portfolio manager at RBC BlueBay and Pierre de Saab, Former Partner at Dominice & Co Asset Management.

Patrick Haskell, managing director and head of the Municipal Bond Group at BlackRock, delves into the evolving municipal bond market, highlighting it as a potential goldmine for income amidst changing tax policies. He discusses the implications of current dynamics, including the rise of active ETFs and the importance of using technology in assessing credit risks. Haskell emphasizes the unique opportunities for institutional investors while navigating the complexities of fiscal uncertainties and market trends in this transformative period.

In this engaging discussion, Tim Horan, Chief Investment Officer of Fixed Income at Chilton Trust, shares insights on the current economic landscape and bond market dynamics. He highlights the Federal Reserve's nuanced approach to interest rates, particularly the term 'transitory.' Horan emphasizes the attractiveness of municipal bonds while steering clear of longer-maturity Treasuries. The conversation also touches on the labor market's post-COVID evolution and personalized fixed-income strategies that react to macroeconomic trends.

Direct lending remains a pillar of private credit, providing companies with new and flexible sources of financing in today’s high interest-rate environment. Laura Holson, Chief Operating Officer of Credit and Managing Director at New Mountain Capital, joins Bloomberg Intelligence’s Noel Hebert and Sam Geier on Credit Crunch to discuss the firm’s focus on “defensive growth” direct lending, and expansion into other areas of the private credit markets, including BDCs and CLOs. The conversation touches on collaboration within New Mountain, deal sourcing, the addressable market, direct lending risk premiums, secondary market viability, and more.

Government bonds sold off in the past weeks, due to tariff news from the US and the debt brake being eased soon in Germany and this has increased the probabilities of rate cuts by central banks, including the Fed. Credit rallied through this mayhem and the big question is, will this strength continue? In this episode of our Credit Crunch podcast, host Mahesh Bhimalingam, Global Head of Credit Strategy at Bloomberg Intelligence, and Pierre Krief, Head of Credit at CDC (Caisse Des Depots ET Consignations) discuss tariffs and debt brake effect on inflation, growth and central bank policy, its impact on global credit and the challenges of taking a directional view after the big rates moves.They discuss rates, yields and credit spreads along with curve steepening, the dollar weakness and their impact on credit.