BofA Global Research Podcasts

The 10-year yield has more than doubled since the start of this year, and it's now at the level at which it peaked in 2018. The higher 10Y yield has taken a toll on risk assets, especially growth stocks, and elevated rate volatility has contributed to the weakness. But Mark does believe 10Y yields have only modest upside from here and expects rates volatility to fall when the path for lower inflation becomes more clear and Fed moves more predictable. Mark also discusses the impact that structurally higher inflation could have on rates. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Forest products companies contributing carbon sequestration enter the sustainability and ESG discussion Forests are one of the largest sources of carbon sequestration through voluntary carbon markets. Wood products companies which own these forests harvest wood for housing and other applications and as long as the wood remains protected, as it would be in a house, the materials become a carbon sink. And from a revenue perspective, companies can sell carbon sequestration into the voluntary carbon markets, though those markets are still nascent. Awareness of the positive carbon attributes of wood could also boost wood construction and allow it to displace some concrete and steel. Join our discussion with George Staphos as he discusses forest product companies and their role in helping the world reach net-zero. "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Despite shorter term macro headwinds, Miami conference demonstates growing interest and positive sentiment The digital assets market has declined with stocks and bonds and the market value of the 18,000 tokens that are in this ecosystem remains down about 16% year to date. Digital assets, including Bitcoin, continue to act like risk assets rather than inflation hedges. With an aggressive Fed as a top concern for investors, digital assets have struggled this year despite long term promise for many. In this episode Alkesh gives an update on Bitcoin Miami and insights gained from the BofA Global Research Crypto Mining conference. He believes that there are misconceptions around Bitcoin’s energy consumption, but that there is work to done to make mining more energy efficient longer term.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Gold holding up well despite higher rates and the dollar, likely more strength coming US equities, credit and Treasuries have outperformed gold for the better part of a decade. However, with inflation likely to remain above recent norms and the secular low in rates having passed, per Chief Investment Strategist Michael Hartnett, there's a regime change underway, and what has worked won't necessarily work going forward. Joining us today is Paul Ciana to provide a technical view on the yellow metal and its relationship with equities, currencies and rates. Lawson Winder joins to give a fundamental view on gold, the implications of inflation on gold mining and whether crypto can be a substitute for gold.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Higher prices, rates and low inventories may make homeowners stay put and remodel instead Owing to an upward march in prices and rates, housing affordability is as poor as it’s been since the housing crisis and down payments are at record levels. But there are many differences between this housing market and the market of ‘07/’08, particularly on the supply side. And that dearth of supply along with a reluctance to move into a higher mortgage rate could convince many to stay put and to upgrade their existing home instead, boosting home improvement demand. Meanwhile, home furnishings demand may be less persistent and could suffer as stimulus is lapped, there’s payback from demand pull-forward, and renters get squeezed by climbing monthly payments. Joining us to discuss these issues and more are BofA Global Research analysts Rafe Jadrosich, who covers homebuilders, Curtis Nagle, who covers home furnishings as well as real estate fintech and Elizabeth Suzuki who covers home improvement and other hardline retailers   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

It's called "defense" after all, and ESG investors taking a more nuanced view of the group ESG investors have traditionally viewed defense and energy sectors as off-limits or at least challenging to their objectives. However, defense and energy stocks have seen dramatic gains this year as energy prices have boomed as have plans for defense spending. Many ESG investors had already been moving toward a more nuanced approach, looking for ESG improvers rather than just excluding certain groups and companies, a move that has been accelerated by recent realities. Defense companies that were once associated with harmful practices may now be viewed as champions of freedom and democracy and the EU taxonomy around ESG investing seems to allow this as long as companies aren't wholly opposed to social objectives. Savita Subramanian and Ronald Epstein join us to discuss these issues and how defense may benefit from both higher spend and a widening pool of investors.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.  

Despite pricing pressures, digital assets continue to grow and a regulatory framework is imminent The crypto asset market is up 250% since January of last year despite a 20% correction at the start of 2022. Demand for digital assets continues to grow and Alkesh believes values will continue to appreciate in the medium term but will face macro pressures from liquidity and rate concerns in the near term. He explains how recent regulatory action can be a positive for crypto markets as users become more comfortable adopting technology that is regulated with protection for consumers and businesses. Alkesh also sees greater usage of NFTs not only as ownership of a unique asset but also as a marketing tool for brands across many industries.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.  

COVID recovery, an aging population and still plenty of room for innovation will drive growth In 2020, the MedTech industry faced revenue pressures as COVID related headwinds forced many patients to avoid the hospital for elective procedures. As COVID risks fade, the industry has returned to growth and the demographic and innovation tailwinds that have helped to drive steady growth remain. Travis joins us to discuss how some of the biggest MedTech markets, from diabetes to heart surgery, will benefit from continued innovation, helping the group and potentially millions of patients. And thus far, MedTech has actually benefitted from the increase in the number of surgeries done outside of the hospital. Travis also highlights that hospitals are now better equipped to handle future COVID spikes and MedTech should remain resilient even through a negative economic backdrop.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.  

Higher recycling rates will be key to the energy transition and it starts with product design Metals including copper, aluminum and nickel should see booming demand as the world transitions to cleaner energy. These MIFTs, or Metals Important for Future Technologies, could be in short supply in the future, however, with electric vehicles requiring twice as much copper as a traditional ICE (internal combustion engine) vehicles and far more nickel, cobalt and lithium, which are hardly used in traditionally powered vehicles. There's simply not enough investment happening in mining, but recycling offers a partial solution while also emitting much less carbon than pulling metals from the ground. Michael discusses important considerations around building a more efficient recycling supply chain, product design being one of the keys.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Safe drivers look elsewhere for discounts as the auto insurance industry is entering a hard market During the peak of COVID lockdowns, miles driven declined dramatically while auto insurers posted highly profitable quarters and policy holders enjoyed premium cuts and rebates. But the pandemic recovery commenced, pushing miles driven higher along with pricing for used cars and parts and forcing a reversal of fortune for auto insurers. Josh Shanker joins us to discuss how the the recent hit to auto insurance profits will result in insurers pushing premium prices higher, likely leading consumers to shop around for better rates and resulting in market share shifts. He advises consumers to shop for insurance early while insurers and regulators implement premium increases. Josh also discusses long term implications for the industry from innovative safety technology and autonomous vehicles.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.