UBS warns credit spreads not fully pricing a potential growth shock from Middle East conflict and oil disruptions.
UBS identifies buying thresholds at ~115 bps for US investment‑grade and 415 bps for US high‑yield bonds, and similar European levels.
The bank suggests sovereign bonds like Germany’s 10‑year Bund may outperform credit and serve as duration hedges amid slowdown risks.
UBS maintains neutral stance on credit, advising investors to wait for spreads to widen before increasing exposure.