UBS Lowers U.S. Credit to Underweight Saying Good Days Are Gone

UBS AG credit strategists changed their recommendation for U.S. corporate bonds to a “small underweight” as a rise in benchmark borrowing costs threatens to erode returns.

Investors should avoid interest-rate sensitive securities even after longer-maturity debt outperformed the broader market in the first three months of 2014, strategists led by Matthew Mish wrote in a report dated yesterday with a heading “The good ole’ days are gone.”