FICC Focus

With stronger nominal growth, persistent inflation and an AI-driven investment boom reshaping the macro backdrop, investors may need to rethink traditional stock and bond allocations. Anwiti Bahuguna, co-chief investment officer of Northern Trust Asset Management, joins Bloomberg Intelligence chief US interest rate strategist Ira Jersey to discuss this and more on this Macro Matters edition of the FICC Focus podcast. Bahuguna explains why she sees the post-Covid economy as a new macro regime, how a more divided Federal Reserve could affect the pace of tightening and why strong wealth effects continue to support US consumers. The two also discuss Northern Trust’s overweight to AI-linked emerging markets, Europe and the UK as portfolio diversifiers. Other topics include political risks surrounding data-center construction and why real assets may play a larger role in portfolios facing both inflation and growth shocks.

The Macro Matters podcast is part of BI’s FICC Focus series.

“The idea of patient capital is something of a dinosaur,” says Greg Peters, co-CIO for PGIM Credit, on the speed with which markets can reprice. “The rise of algos and CTAs, you’re just seeing a lot more volatility in the market.” Peters joins Bloomberg Intelligence’s Noel Hebert on the latest episode of the Credit Crunch podcast to discuss the market function, why sovereign and AI funding needs risk crowding-out behavior in markets, particularly at the long end, and the importance of a new response function at the Federal Reserve. They explore relative value across the curve, whether the hyperscaler debt stack is investable and regulatory arbitrage as a potential destabilizing force for markets.

The Credit Crunch podcast is part of BI’s FICC Focus series.

In this edition of All Options Considered, BI Chief Global Derivatives Strategist Tanvir Sandhu discusses why US rates volatility has risen from its early-2026 lows but remains near longer-run historical averages rather than at an outright extreme. He also examines how higher forward rates may limit a return to those lows, where volatility is concentrated across the swaption surface and why risks priced by the options market are becoming more two-sided.

“We’re credit guys,” says James Cuby, partner and head of Europe for Waterfall Asset Management, when discussing asset selection and the right risk-return profile. “We’re not going to be able to generate a 30% return, and therefore an investor’s not going to be comfortable with a minus 20% return.” Cuby joins Bloomberg Intelligence’s Noel Hebert on the latest episode of the Credit Crunch podcast to discuss Europe’s asset-based finance landscape, including the continued migration from banks into alternative credit providers, what lending models are built to navigate that evolution, and what it takes to compete given the aggressive flow into the asset class. They explore the effects of the current rates backdrop and sovereign debt concerns, looming elections and why European consumers may be better credits than their US counterparts. Cuby also touches on the role of technology and the importance of relationships in deal sourcing.

With repo markets functioning smoothly but major structural changes approaching, investors are focused on funding conditions, Federal Reserve liquidity and the shift to mandatory Treasury clearing. Andrew Lazar, head of sales at Buckler Securities, joins Bloomberg Intelligence interest rate strategists Ira Jersey and Will Hoffman to discuss these issues on this Macro Matters edition of the FICC Focus podcast. Lazar explains why softer demand for leverage has helped keep repo conditions calm, how Fed reserve-management purchases can provide liquidity during periods of stress and why central clearing could raise costs without ending Treasury basis trades. The group also discusses the Fed’s rate outlook, Chairman Kevin Warsh’s shifting communications strategy and why Lazar sees scope for long-dated Treasury yields to decline if geopolitical and energy pressures ease.

The Macro Matters podcast is part of BI’s FICC Focus series.