On the call today we size up the move higher in rates over the last 48hrs and try to gauge potential impact of the break down High Yield.
Meanwhile oil, commodities head higher and are supported by better industrial data and global macro. We have a better global economy this week over last. Rates should be moving higher and maybe the question is why had rates moved lower into the end of last week?
EM stalls a bit into the weekend but we are encouraged by the bottom-up EPS growth we are getting out of Asia, and even Brazil. Stay OW.
Banks are underperforming and may offer the best valuation support of all the major sectors. We discuss sector relative value.
Have a great weekend.