Credit Suisse Sees Blue Sweep as Dominating Market Narrative
- Firm retains recent election-hedge trades like straddle
- Election calculus suggests leaning ‘toward steepening’
Joe Biden speaks to the media in Hagerstown, Maryland on Oct. 6.
Photographer: Brendan Smialowski/AFP via Getty ImagesThis article is for subscribers only.
Markets are gaining confidence that the Democratic Party will win big in the upcoming U.S. election.
Despite Tuesday’s partial retracement of long-end yields after President Donald Trump suspended stimulus talks, “the higher likelihood of a blue sweep scenario seems to be the more dominant narrative,” said Credit Suisse Group AG’s Jonathan Cohn, referring to the prospect of victories by Joe Biden and fellow Democrats.