Live Updates > Live Update Details
2026-09-18 19:32:12
[Andromeda: Bessant Faces “Impossible Triangle”, Yet Bondholders Still Don’t Believe the Ship Will Sink] (1) Alberto Gallo, co-founder of Andromeda Capital Management UK LLP, said that the credit market is showing signs of extreme complacency: credit spreads are at historic lows and fail to reflect potential risks. (2) He warned that as risk structurally shifts from equities and real assets to fixed-income assets, bondholders are heading for losses; this trend is driven by a historic investment boom and a surge in government spending and is accelerating. (3) Gallo pointed out that U.S. Treasury Secretary Scott Bessant faces an “impossible triangle”: controlling the yield curve, not cutting the fiscal deficit, and maintaining a strong dollar. (4) He warned that one of these three goals must be compromised, and a weaker dollar is most likely to be the outlet for releasing pressure. (5) He said: “Bessant is the captain, and bondholders are the passengers on the Titanic. When the iceberg hit the Titanic, the bondholders—the passengers—did not rush to the lifeboats because they did not believe the Titanic would sink.”
