Kathy Jones: The Bull Case For Bonds, And The Need For “Caution” on Private Credit & Leveraged Loans

Kathy Jones, Chief Fixed Income Strategist at Schwab, joins Forward Guidance to share her outlook on interest rates, credit spreads, the economy, and the Federal Reserve. Filmed on December 5, 2023. __ MetaMask Portfolio is your one-stop shop for all things web3. Instead of connecting to multiple exchanges, dapps, and tools, you just need to connect to one simple dapp to track and manage all your assets across different networks and accounts. MetaMask Portfolio provides a secure and convenient way to perform common tasks such as Buy, Sell, Swap, Bridge, and Stake. Try MetaMask Portfolio: https://metamask.io/portfolio/?utm_source=blockworks&utm_medium=podcast&utm_campai[…]_Podcast_ForwardGuidance&utm_content=pDapp_podcast_FG_shownotes __ Follow Kathy Jones on Twitter https://twitter.com/KathyJones Follow Schwab Research on Twitter https://twitter.com/SchwabResearch Jack Farley on Twitter https://twitter.com/JackFarley96 Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance Follow Blockworks on Twitter https://twitter.com/Blockworks_ __ Use code FG20 to get 20% off Blockworks’ Digital Asset Summit in March: https://blockworks.co/event/digital-asset-summit-2024-london __ Timestamps: (00:00) Introduction (07:45) Inverted Yield Curve Is Here To Stay (10:01) Term Premia Will Decline (14:12) Bond Market Does Not Always Track Nominal Growth (17:21) Can't Rule Out That This Is A Counter-Trend Rally (20:56) How Does Bond Supply Affect Price? (29:02) The Days Of Quantitative Tightening (QT) May Be Numbered (31:33) Mortgage-Backed Securities (MBS) (34:09) Investment Grade (IG) Corporate Bonds (37:22) We Are Not Enthusiastic About CLOs and Private Credit (46:40) Sentiment and Positioning In Fixed Income (48:50) Views on Europe and Japan (53:32) Bull Case For The Dollar __ Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.