UBS Says CTAs Dumped 75% of Equities, Sees Sage AI Pricing Power and Reworks High-Yield Desk
UBS reported Tuesday that commodity trading advisers—those trend-following, model-based funds—have slashed global equity holdings by 75% since the Middle East conflict erupted. The Swiss bank, meanwhile, stuck to its upbeat view on Sage’s AI pricing strength. In a separate update, UBS is said to be revamping a European high-yield trading desk focused on lower-rated corporate debt. This surge is significant—asset prices, software valuations, and bank trading desks are all getting squeezed by the same set of pressures. Oil hasn’t dropped below $100 a barrel. Investors are holding their breath for cues from the big central banks, while software shares keep taking hits as buyers weigh whether legacy players can actually leverage AI for new revenue, or if it just erodes their advantage.
