JPM's Berro: Oversold Markets Can Stay Oversold

The transcript discusses the current state of global markets, focusing on the rise in yields and central bank policies. It highlights the Fed's potential actions to control inflation and the resilience of the US economy. The analysis covers the credit market, noting the value in high yield and investment grade bonds despite potential rate shocks. The impact of currency fluctuations, particularly the yen, on bond markets is examined. Finally, strategies for maintaining credit exposure in a high-yield environment are discussed.

What is the relationship between price and yield in the market?

• Price up, yield up

• Price down, yield down

• Price up, yield down

• Price down, yield up

What is the Fed's target for the interest rate by the end of the year?

• 4%

• 3%

• 1%

• 2%

Which sector is expected to see increased consumer spending as the economy reopens?

• Technology

• Healthcare

• Services

• Manufacturing

What is the current trend in high yield bond yields?

• Decreasing

• Unchanged

• Stable

• Climbing

Why are Japanese investors selling their foreign treasury bonds?

• Strengthening yen

• Weakening yen

• Rising US dollar

• Falling US dollar