Fed Less Than Halfway Through Hikes: JPMorgan's Michele

The video discusses the Federal Reserve's rate hikes, analyzing their impact on the market and credit sectors. It highlights the debate over high yield bonds, default rates, and the potential for a recession. The speaker suggests waiting for a recession to take advantage of market repricing, emphasizing patience in investment strategies.

What has the Federal Reserve done so far in terms of interest rates?

• Raised rates by 500 basis points

• Raised rates by 225 basis points

• Lowered rates by 225 basis points

• Kept rates unchanged

What is the current yield of the high yield market according to the transcript?

• 12%

• 10%

• 8.5%

• 5%

What is the expected default rate in a recession as mentioned in the transcript?

• 3-4%

• 0%

• 1-2%

• 5-6%

What is the anticipated yield with credit spread during a recession?

• 15%

• 10%

• 8.5%

• 12%

What is the advised strategy regarding market impatience and recession?

• Wait until the recession occurs

• Act immediately to take advantage of repricing

• Invest in low-yield bonds

• Ignore market changes