UBS

Pivotal questions for investors to ask.

Growth in issuance across geographies and sectors.

When policymakers in the world’s two largest economies have shifted to a pro-growth mindset, it pays to listen.The Fed is taking a proactive stance towards ensuring a soft landing, even as US economic data continues to look solid in aggregate.China’s Politburo has expressed newfound urgency to stabilize the housing and equity markets, as well as directly support the Chinese consumer.We have upgraded China and emerging market equities to overweight, and broadly see room for cyclicals to outperform defensives.

The turnaround in interest rates has brought greater momentum back to the Swiss real estate market and led to a stabilization of yields and a normalization of the risk premium.

Fundamentals are regaining the upper hand.

China’s Politburo has expressed newfound urgency to stabilize the housing and equity markets, as well as directly support the Chinese consumer.

Covenants in private credit often act as crucial safeguards, functioning as early warning systems for lenders. They help monitor borrower stability and manage risks, allowing lenders to intervene if deviations from their base case occur.

We expect to see significant investment in electrification and the grid, which will drive strong demand for critical materials, the building blocks of the energy transition.

Our monthly insights into private markets.