08:08 AM EDT, 09/12/2024 (MT Newswires) -- UBS's (UBS) asset management unit has been reducing its exposure to corporate bonds during market rallies over fears that a slowing economy or the US elections could lead to volatility, Reuters reported, citing Jonathan Gregory, head of fixed income UK at UBS.

Corporate bonds have seen strong gains over the past two years, with the ICE BofA US corporate bond index up 14%, due to higher yields amid rising interest rates and steady economic growth, the report said. Credit spreads, have tightened, however, meaning investors are not being adequately compensated for the risk, Gregory told Reuters in an interview.

"We're priced pretty close for perfection in credit markets from here, but plenty of things can knock you off track," Gregory said, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 29.09, Change: +0.09, Percent Change: +0.31