Schwab's Jones Says Credit Markets 'All Good, Except The Yield'

The video discusses the economic context of a potential global recession and the Federal Reserve's policy challenges, particularly in managing the yield curve and inflation expectations. It explores the bond market dynamics, including the impact of quantitative easing and global savings glut on long-term rates. The performance of high yield and investment grade credits is analyzed, highlighting their strong fundamentals despite low yields. Finally, the video speculates on potential hawkish surprises from the Federal Reserve, such as raising the terminal rate or initiating quantitative tightening.

What would a hawkish surprise from the Federal Reserve entail?

In what ways could quantitative tightening impact the bond market?