Stock-bond correlation has moved firmly positive as inflation risk and concern over debt and deficits put upward pressure on rates, reducing the diversification benefit of high-quality bonds.
In the latest 3 Things in Credit, KBRA’s Chief Markets Strategist Van Hesser explores Caterpillar’s exposure to the artificial intelligence (AI) buildout, the wider economic reach of data center investment, and the weakening diversification value of high-quality bonds. Listen to Van Hesser’s insights on: Apple Podcasts | YouTube Music | Spotify or visit
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