Zverev's fund owns stocks including Hubbell Incorporated (HUBB.N), an electricity company, and tech defense contractor Leonardo DRS. "In equities, anything exposed to government spending will have a bit of a wobble" as the X-date approaches, Zverev said. Republican proposals for spending cuts may effect green investment initiatives signed into law last year. President Joe Biden's Inflation Reduction Act, a stimulus scheme now caught in the crosshairs of debt ceiling battles. Mikhail Zverev, manager of Edinburgh-based Amati Global Investors' strategic innovation fund, said that around 15% of his fund's holdings were companies broadly exposed to spending related to U.S. "If debt ceiling concerns grow we think markets will price in more Fed rate cut expectations, which means 5-year yields would fall," said Miyairi. Nomura currency strategist Yusuke Miyairi said another reason to expect yen outperformance if wrangling in Washington escalates is a strong correlation between dollar/yen and five-year Treasury yields. The safe-haven yen could be one beneficiary. 3/ BUY THE YENĭebt ceiling jitters are good timing for the yen, which slumped 1.6% last week as the Bank of Japan held fast to ultra-loose monetary policy. CDS protection buyers," said Voon Kiat Lai, senior portfolio manager at Redhedge Asset Management.Ĭlosing in on the X-date, the risk premium on CDS might rise, making this protection more valuable and, therefore, more profitable if sold on to others, he said. "Although a default is highly unlikely, the large potential pay out in the event of a CDS trigger on a technical default continues to attract U.S. Traders most commonly use 6-month CDS, which on Thursday were trading around 241 basis points (bps), double where they stood 14 days ago, according to one market participant. "So we've been arbitraging." 2/ RAINY DAY DEFAULT PROTECTIONĬredit default swaps (CDS), which work like insurance against a debt default, are seeing strong demand. For example, in April, yields on one-month T-bills were as low as 3.34% while six month bill yields approached 5.1%. Marciot said he had been taking advantage of a difference in yields between T-Bills of varying maturities as debt ceiling jitters had created an unmerited gap between bills that fall due before and after the expected X-date. Unigestion's head of investments, Olivier Marciot, said he was taking advantage of higher yields on longer maturity T-Bills likely to fall due after the "X-date" - when the government would exhaust its cash and borrowing capacity. īlackRock says (BLK.N) it's been buying Treasuries in anticipation of an economic slowdown and a protracted debt ceiling fight. Yields on some short-dated Treasury bills have shot up - two-month T-Bills have surged to over 5%, rising for six straight weeks. debt limit raises the risk of fresh turmoil for markets. In Hollister jeans, your outfitting options are endless.Stalemate in Washington over raising the U.S. Style with an off-the-shoulder top, comfy tee or basically, anything. We have clean hems, too, for when you want to keep it classic.īut if clean and classic isn’t your thing, check out our collection of ripped jeans for women for the ultimate lived-in, loved-hard look, complete with vintage washes, fading and fraying. Like frayed hems, cuffed hems, let-down hems and more. Available in full-length and crop, find all your favorite hem treatments within our collection. styles.Ĭheck out our range of washes, from super light to dark and just about everything in between. So flattering, you’ll probably want more than one pair. And our ultra high-rise and high-rise jeans hit higher on the waist for an even more flattering, waist-defining fit. Made with stretch, each pair fits to your curves and shows off your shape. Similar to the mom jean, but with a slightly wider leg, the straight jean is another loose, comfortable fit you’ll be seeing everywhere this season.īut if a fitted, curve-hugging jean is more in your comfort zone, you’ll love our jeggings and Designed in a comfortable, relaxed fit that’s slim through the thigh and loose through the calf, you’ll definitely want more than one pair. They’re not like a regular mom jean, they’re a cool mom jean. Speaking of trending, you should check out our collection of mom jeans – We’re focused on providing the most comfortable fits and fabrics so that you can feel good just being you in your jeans.įrom the latest, trending styles to simple, clean and classic, we’re creating jeans you’ll want to live in.
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