Jamie Dimon's Rate-Spike Nightmare
Everyone is convinced rates will remain low, which means big trouble if they're wrong.
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Bond investors have learned to tune out Wall Street's dire forecasts for higher benchmark U.S. yields, and it's easy to see why: Big bank analysts have been wrong time and again.
At this point, however, even analysts have given up predicting higher rates, and perhaps everyone has become too sanguine about benchmark borrowing costs staying low. That's one of the biggest worries of JPMorgan Chase CEO Jamie Dimon, as he laid out in his annual letter to shareholders this week. He said he was more concerned about a sharp increase in Treasury yields than he was about potential negative interest rates in the world's biggest economy.