The latest in finance, economics and investment. Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene &amp; Paul SweeneyTuesday, May 26, 2026 Featuring: 1) Amanda Lynam, Chief Credit Strategist at Goldman Sachs 2) Dhaval Joshi, Chief Strategist - Counterpoint at BCA Research 3) Sheila Kahyaoglu, Managing Director: Equity Research at Jeffries 4) Admr. James Starvridis, former NATO Supreme Allied Commander Europe and former Navy Admiral See omnystudio.com/listener for privacy information.

Stocks Rise as Iran Peace Hopes Hold

Bloomberg Surveillance

# Full Transcript

**Podcast:** Bloomberg Surveillance

## Transcript

Bloomberg Audio Studios Podcasts Radio News. This is the Bloomberg Surveillance Podcast. Catch us live weekdays at 7 a.m. Eastern on Apple CarPlay or Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube. If I'm Goldman Sachs, I want her to come home.

Amanda Linham, you've been in before, but this is the first time you and I have seen each other since this new online. What's it like to walk into Shea Sachs? I mean, what is it like to walk in? I mean, you worked there before and you did other things. But what was it like to come home? It's wonderful to be back. And it's very special because I came back to lead my old team. So my beloved former boss left and I came back to take his seat. So it's it's been really wonderful.

And I had a great experience with BlackRock, as you know, but it's very nice to be home at Goldman. What is the singular distinction? Like if you're in front of the newly minted Goldman interns beginning of summer, what's your what's your single distinction on yield at this moment? Well, I think for fixed income investors, there's this ongoing tension between the tight level of spreads, but the attractive level of all in yields.

And so the relative value conversations that we're having with clients really are different depending on the focus for which they're approaching the fixed income market. I think on net, this actually just means that this tight level of spreads can probably persist for a bit longer because the wave of demand specifically from pensions and insurance companies is really robust. And actually, we did a report on this last week, basically making the case that there are real structural reasons why pensions and insurance companies might want to increase their allocations to high quality corporate bonds.

Pensions are at the strongest funded ratio since 2007 bond bond allocations for insurers are 10 percentage points below 2010 levels. So there are some real drivers, I think, technically that can cause spreads to stay in this tight range for a bit longer. We're seeing yields come in today just reflecting maybe a little bit of improvement in the mid of Middle East here. Am I just clipping coupons in 2026 if I'm a credit investor? I can't look for the types of returns I had last year, for example.

So here again, there's this kind of relative value dynamic tension that I think is important to be aware of. So we believe that if you are allocating to credit, you should be doing so for income and yield, as you noted. If you look at, however, total returns versus excess returns, you can see that duration exposure has been a headwind in this market. Said differently, high quality, tight spread, long duration paper has really underperformed from a total return basis because of the move higher in the risk free rate.

Excess returns, however, have been holding in better. And so from o...

Stocks Rise as Iran Peace Hopes Hold

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Stocks Rise as Iran Peace Hopes Hold

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.