Jason Katz, managing director and senior portfolio manager at UBS, said on President Donald Trump’s impact on Wall Street and what he expects from revenue and trade deals.
US Corporate Bonds The spread tightened in the second half of four weeks last week as concerns surrounding the nearly a month of global trade war appear to have settled down.
Market risks caused by the president Donald Trump’s Trade policy has shaken the US corporate bond market for weeks following the broad tariff announcement on April 2nd. But they seem to have settled in the week after his decision to suspend collections in most countries except China.
US President Donald Trump holds the “mutual tariffs” chart while speaking during the “American wealthy Again” trade announcement event at Rose Garden held at the White House on April 2, 2025 in Washington, DC. (Chip Somodevilla / Getty Images / Getty Images)
Luxury bonds closed two basis points on Friday, spreading to 8 bps overall last week. Junkspread, meanwhile, narrowed its 6 bps down to a total of 367 bps and 49 bps last week, according to the Ice Bofa index.
In the recent market turmoil, who owns US finances?
The narrowing of the IG spread is Presidential election, Dan Krieter, chief credit strategist at BMO Capital Markets, took the attention Monday.
Analysts believe the spread has been clearly milder, primarily in the global trade tensions last week. They also pointed to data showing resilient economy and market technology.
Luxury bonds closed two basis points on Friday, spreading to 8 bps overall last week. (Photo by Reuters/Mike Segar/Reuters)
However, market participants expect bond spreads to spread overall for the second quarter and the rest of the year, as Trump’s economic policies and its impacts are becoming more widespread.
“We believe the spreads are still biased,” Hans Mikkelsen, head credit strategist at TD Ameritrade, said in a memo on Monday morning.
According to Mikkelsen, the bond market experienced record volatility last month, and in response to tariff conditions. He said investment grade bond trading volume rose nearly 14% to record levels at the same time last year, while junk bond trading rose almost 12%, but was shy about the highest ever recorded reaching March 2020.
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Analysts look forward to new high-quality supply of $30 billion to $35 billion this week, and total May IG supply of $150 billion to $160 billion.
15 companies including Google Parent Alphabet Inc. Philip Morris and Procter & Gamble are expected to price new bonds on Monday.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| googl | Alphabet Inc. | 160.06 | -1.91 |
-1.18% |
| PM | Philip Morris International Inc. | 168.74 | -1.45 |
-0.85% |
| pg | Procter & Gamble Co. | 162.00 | +0.99 |
+0.62% |
