CIO Fixed Income Roundtable Podcast Series

UBS strategists upgraded high yield, investment grade, and $25-par preferreds to "attractive" after the Fed's surprise hike pushed yields toward multi-year highs.

• Fed hikes, not cuts: FOMC raised rates 25bp to 3.75-4% (unanimous 12-0), the first hike since July 2023, citing strong growth, sticky inflation, and Middle East-driven energy prices.
• Rates surge post-Jackson Hole: Since late August, 2-year yields rose 50bp and 10-year yields rose 35bp; year-to-date the 2-year is up 126bp and 10-year up 85bp, with 10-year now near 5%.

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