Morgan Stanley’s Wilson and JPMorgan’s Michele Warn About QT
- Bond markets not ‘adequately pricing’ in QT: Michele
- Wilson says ‘it’s irresponsible’ to call market highs
Michael Wilson says the Federal Reserve will not pivot and he says most average investors are realistic about the Fed.
Source: BloombergThis article is for subscribers only.
Echoing nearly everyone on Wall Street, JPMorgan Asset Management’s Bob Michele and Morgan Stanley’s Michael Wilson are on guard for the potential ripple effects of the Federal Reserve’s so-called quantitative tightening.
This is laid bare in the bond market. Credit spreads, typically the difference between the yield on a corporate bond and the benchmark rate, are still “too expensive,” said Michele, JPMorgan Asset Management’s chief investment officer, on Bloomberg Television Wednesday.