In this week's episode, KBRA Chief Strategist Van Hesser discusses:
1. Margin pressure. The Producer Price Index confirmed this week what we all know—strong demand and supply chain bottlenecks are causing price pressure that figures to hit corporate margins. We think this is largely a story shareholders have to worry about.
2. ESG favorable bonds are on track to cross $1 trillion this year. The momentum, and the change that goes with it, is palpable.
3. Big bank earnings are out, as is their color on the credit environment. Their barely contained optimism reflects an environment that soon will fade.