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Unravelling the impact of the banking stress on the economy

BNP Paribas Wealth Management

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The Sweet Spot for Investors Today

I have a lot of sympathy with that because I remember last year going on holiday the airports were a nightmare and it was precisely because airports and airlines had laid off too many people during covid. Okay so in terms of the conclusion therefore let's look at bond markets the fixed income sector we recently downgraded our recommendation or short term government bonds from positive to neutral. We're not keen on the high yield credit segment you know highield corporate bonds either because of the risk of zombie companies. The difficulty of refinancing in these higher interest rate environment particularly in the US but the second we do like still investment grade bonds in europe and the US with a maturity of let's say three to five

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