Term premiums seen rising globally amid Europe, Japan fiscal pressures
Market talk cites rising European debt supply to fund defense and infrastructure spending, high corporate debt issuance by hyper-scalers for AI, and increased Japan fiscal spending as drivers likely to lift term premiums globally.
Increasing debt supply in Europe to fund higher defense and infrastructure spending, unusually heavy corporate debt issuance by hyperscalers to finance AI investments, and rising fiscal spending in Japan are likely to push term premiums higher globally, said Said Haidar, founder and CIO of Haidar Capital.