Bloomberg Surveillance · Friday, September 4, 2026
Analysts from Baird Strategas are observing unsettled price action in the market, with a "momentum bleed" and expanding 20-day lows suggesting potential cyclical deterioration. However, credit markets remain stable, and there are no signs of broad economic weakness.
“Yeah, I think what you've seen basically since the middle part of last month is this little momentum bleed under the surface. You've seen 20-day lows actually start to expand. I think we got to about 30% of the index.”
“I think on balance, there has been some modest deterioration to the cyclical corners of the market. The good news is we're not seeing it in credit here at all. Double B spreads made new cycle tights this week.”
“My kind of overarching bias is, listen, credit's still fine. The market's going through a seasonal soft patch here. I think things are okay.”