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The sky is falling...
Posted on: May 20, 2025 at 13:44:52 CT
MUTGR MU
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While the bond market reacted fairly minimally to Moody’s downgrade, UBS adds that should volatility increase at some point, the Fed would likely act.
In a note sent to Fortune today, UBS’s chief investment officer Mark Haefele wrote: “Overall, we view this latest credit action as a headline risk rather than a fundamental shift for markets. We would also expect the Federal Reserve to step in if there were a disorderly or unsustainable increase in bond yields.
“So while the downgrade may lean against some of the recent ‘good news’ momentum, we do not expect it to have a major direct impact on financial markets.”
In a note sent to Fortune today, UBS’s chief investment officer Mark Haefele wrote: “Overall, we view this latest credit action as a headline risk rather than a fundamental shift for markets. We would also expect the Federal Reserve to step in if there were a disorderly or unsustainable increase in bond yields.
“So while the downgrade may lean against some of the recent ‘good news’ momentum, we do not expect it to have a major direct impact on financial markets.”
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The sky is falling... - MUTGR MU - 5/20 13:44:52