Schwab’s Jones Worries Credit Markets Are Priced for Complacency
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High-grade US corporate bond spreads hover near their tightest levels in more than 25 years and may grind even lower next year. Charles Schwab Corp.’s Kathy Jones sees cause for concern.
“There is a sense now of real complacency that’s priced into the market,” the chief fixed income strategist at Schwab Center for Financial Research said at the 9th annual Bloomberg Intelligence credit conference on Thursday. “It’s priced as if nothing will ever go wrong.”