Bonds & Stocks
Portfolio managers are selling default protection at an increasing pace, a signal they see little risk on the horizon, with their position on the main investment-grade US credit-default swap index now amounting to over $105 billion. Their position on the main investment-grade US credit-default swap index now amounts to over $105 billion, the most in at least three years.
Economy
Close Federal Reserve watchers have a message for anyone who thinks the next leader of the US central bank will deliver lower borrowing costs: Don’t count on it. While it’s an unlikely outcome, some investors have staked out positions in futures markets that will profit if interest rates drop immediately after Jerome Powell’s term as chair ends in May 2026.
World
Kuwait’s state energy company said OPEC+’s latest super-sized supply hike and recent interactions with customers suggest persistent demand growth beyond the summer driving season. CEO of Kuwait Petroleum Corp. notes that recent demand has been driven by Asia, with the company's global business partners asking if it has additional barrels, and most of Kuwait's oil flows to Asian countries, including China, Japan and South Korea.