Markets Are Underpricing Energy Shock Risks, Warns Barclays President

Barclays Bank PLC’s President, Stephen Dainton, says investors in US markets may be underestimating the risks of high energy prices and rising interest rates.

“If current events continue into the summer with oil prices at $110–$130 a barrel, that’s a significant concern for credit repricing, growth, and stagflation risk,” said Dainton, in an interview on the sides of the FII PRIORITY summit in Miami. He said the market is underpricing those risks.