These 4 tech stocks should be safe from bond market jitters, UBS says

A sign of Swiss banking giant UBS is seen at a branch in Zurich on October 26, 2018.
Fabrice Coffrini | AFP | Getty Images

Investment bank UBS has highlighted four U.S. tech stocks that it says have low exposure to the credit and growth risks that are sending shivers through markets.

Investors have recently become concerned about rising bond yields. As U.S. Treasury yields move higher, so do inflation expectations and the interest rates on corporate debt. Meanwhile, stocks become less so — due to firms' debt repayments costing more because of the higher interest rates — possibly leading to price falls as traders reassess the investing environment.

In its bi-annual update of its macro stock baskets — collections of stocks along similar themes — UBS added a number of new names, including from the tech sector.

The bank tracks several macroeconomic factors including the 10-year U.S. Treasury yield, credit spreads, economic growth, oil prices and the strength of the U.S. dollar, and collates stocks based on whether they are more or less sensitive to those factors. Each basket includes 50 S&P 500 stocks.

In a call with CNBC, UBS analyst Stuart Kaiser highlighted the stocks it had added that would "catch people's attention the most."

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