Why term premium is suddenly the most important number in markets | Episode 2

Bond yields are climbing. But are they climbing for a good reason or a bad one? Rich McDonald and Piers Buckworth return with The Long & Short to unpack why term premium has suddenly become the most important number in markets, and what it means for equities if long end bond yields keep going up. Plus how a two-year bond bought five times over should, in theory, price the same as a ten-year bond, and why it doesn't right now. Before that, they run through mag seven earnings season: Microsoft's forgotten comeback, why Google wobbled last week, CoreWeave's 15% pop on numbers Piers doesn't rate, and why Meta is becoming the market's new "compute landlord." Views are those of the presenters and do not represent the views of IG. Not investment advice. Capital at risk. 00:00 The price of risk 00:17 Welcome to The Long & Short 01:01 Mag seven earnings roundup begins 01:34 Microsoft's forgotten comeback 05:19 Why Google wobbled last week 13:01 Is the AI trade at a fork in the road? 15:16 Where the market got Apple and Microsoft wrong 19:27 Meta, the new compute landlord 20:52 CoreWeave's free cash flow problem explained 26:15 Oracle: software business or AI play? 28:11 Inflation, CPI and the jobs number 32:02 Today's big topic: pricing risk over time 35:26 What is term premium, and why it matters now 42:13 Why bond yields matter for your equity portfolio 46:25 The story of 2027: rates vs AI productivity 47:06 How Piers is trading it, £1,000 a day 52:51 Next week: Birmingham and the British record 📈 Catch more market commentary and insights on our channel. Subscribe ► https://www.youtube.com/@iguk_official?sub_confirmation=1 Find out more: https://upl.inc/k4gg8x Your capital is at risk. 69% of retail investors lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. #PriceOfRisk #TermPremium #BondYields #StockMarket #Microsoft #Google #Meta #Investing #IGMarkets #TheLongAndShort #EarningsSeason #AIStocks