Our thoughts continue to be with those affected from the conflict in Israel and Gaza. Heightened geopolitical risks have led to wider spreads across the Middle East. While the situation is still evolving, benchmarking historical episodes of heightened geopolitical risk suggests that the spread reaction largely tends to be contained, reflecting relatively strong credit fundamentals, consistent with the recent price action.
In this week’s podcast, Ehsan Khoman, Head of Commodities, ESG and Emerging Markets Research (EMEA) at MUFG, draws on historical lessons learnt in order to contextualise the current elevated level of geopolitical risk premia across sovereign spreads.
Our previous episodes of the MUFG Global Markets Podcast can be found directly on our MUFG Podbean page or via a number of platforms, including Spotify, Apple, and Stitcher.