JPMorgan's Michele Sees Entire Yield Curve at 3% Midyear

The transcript discusses the impact of easing financial conditions on market pricing and Chairman Power's expected hawkish stance. It highlights client interest in the bond market, suggesting investment in aggregate bond funds. The discussion covers fixed income investment strategies, emphasizing caution with high yield credit due to recession risks. The analysis predicts high yield as a latter 2023 trade, noting the unexpected resilience of the economy due to accumulated savings.

What is the expected stance of Chairman Powell in the upcoming news conference?

• Dovish

• Hawkish

• Indifferent

• Neutral

What is the recommended strategy for clients interested in the bond market?

• Sell all bonds immediately

• Wait for the market to stabilize

• Buy an aggregate bond fund

• Invest in high yield credit

What is the predicted yield for the Treasury curve once the Fed pauses?

• 2%

• 3%

• 5%

• 4%

Which type of credit is considered a latter half of 2023 trade?

• High yield credit

• Investment grade corporates

• Securitized credit

• Municipal bonds

What factor is helping to absorb the impact of rate hikes?

• Increased government spending

• Rising inflation

• Accumulated excess savings

• Decreasing unemployment