Positioning ahead of US interest rate cuts across the sustainability complex

The MUFG Global Markets Podcast

US Federal Reserve (Fed) Chair Powell’s remarks at the Jackson Hole symposium in August left no room for ambiguity on the direction for policy rates, with the Fed set to deliver the first non-recessionary interest rate cut on 18 September. From this, whilst it is acknowledged that an easing in interest rates will support sustainability-centric counterparties – as they tend to exhibit negative sensitivity to bond yields – the outperformance is not uniform across sectors.

In this week’s podcast, Ehsan Khoman, Head of Research – Commodities, ESG and Emerging Markets (EMEA), contextualises where investors could best position from a sectoral perspective to maximise returns across the sustainability complex as the US Federal Reserve begins to ease interest rates.

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