Key Points
UBS finally inking a deal to buy out Credit Suisse for around $3.2 billion is a positive move as it removes a lot of uncertainty from a banking sector perspective in Europe..
We have to see what does this deal actually mean for investors' views on different asset classes, says Steve Brice, CIO, Standard Chartered Bank..
Secondly, coming to the situation in US regional banks, a lot of focus is on their commercial real estate exposure, particularly in the office space, to see whether the liquidity concerns that we have had over recent times morph into something more concerning on the solvency side..
We have got a lot of data points lined up but in particular, the US Fed is potentially going to pause on those rate hikes and that it is going to be a 25 bps rate hike this time around?..
Summarising that, we would say we are overweight bonds versus equities, overweight investment grade bonds versus high yield bonds and overweight Asia relative to the developed market..
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