Economics

U.S. Recession Risk at 20%-25%, Morgan Stanley's Caron Says

  • Weakness in credit markets threatens to spread through economy
  • `Boring is beautiful' the key for investors seeking bargains

Why the Big Moves in the Japanese Yen?

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The corporate-bond market is sending clear and ominous signs about the U.S. economy, according to Morgan Stanley’s Jim Caron.

"It is telling you we are going into a recession," Caron, managing director at Morgan Stanley Investment Management, said during an interview on Bloomberg TV on Friday. "There is a 20 percent, 25 percent chance that we go into a recession."