What Does a Credit Analyst Do?
On Investing
Navigating Economic Indicators
This chapter explores critical economic indicators, with an emphasis on employment and inflation, including the core PCE metrics monitored by the Federal Reserve. The discussion also addresses the impact of external factors like weather on jobless claims and highlights the discrepancies between consumer confidence and sentiment in relation to ongoing economic conditions.
In this episode, Kathy Jones and Liz Ann Sonders discuss the current state of the bond market and the bull market in equities. They explore the volatility in bond yields, the significance of credit spreads, and the importance of employment and inflation data.
This week, Kathy speaks with Carol Spain, managing director and head of credit research for Schwab Asset Management. Kathy and Carol delve into the intricacies of credit analysis, exploring Carol's unique career path, the role of credit analysts, and the current conditions in the credit market. They discuss the dynamics between credit research and portfolio management, the trends in credit spreads, and the factors influencing corporate credit quality. The conversation highlights the importance of understanding both macroeconomic conditions and issuer-specific factors in credit analysis, while also addressing the outlook for credit opportunities and potential risks in the market.
Lastly, Kathy and Liz Ann review the schedule for next week's economic data and indicators—and tell you which ones really matter.
Read the article by Liz Ann Sonders and Kevin Gordon on the bull market, "Is the Two-Year-Old Bull Market 2 Legit 2 Quit?"
On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting.
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Important Disclosures
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.
Investing involves risk, including loss of principal.
Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.
Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.
Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. For more information on indexes, please see schwab.com/indexdefinitions.
The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.
Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.
ISM is the Institute for Supply Management. https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/
JOLTS is the Job Opening and Labor Turnover Survey.
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