Bloomberg Businessweek cover image

Bloomberg Businessweek

Checking in on Morgan Stanley and Goldman Sach's Earnings

Jan 16, 2024
Ken Leon breaks down big bank earnings. Hayley Berg shares travel outlook. Joel Weber and Eric Balchunas discuss Businessweek Magazine story on ETFs. Katy Kaminski Drive to the Close.
37:57

Podcast summary created with Snipd AI

Quick takeaways

  • The bond market is shifting towards a bullish outlook with a possibility of a steeper yield curve and fewer rate cuts by the Fed.
  • Monitoring bond volatility and bond-stock correlation are crucial indicators to better understand the bond market and market trends.

Deep dives

Bond market signals a time to buy as worst rout in decades subsides

Katie Kaminski, Chief Research Strategist and Portfolio Manager at Alpha Simplex Group, sees a shift in the bond market from a short position to a more bullish outlook. She believes that the next phase for the bond market is a steepening in the yield curve, which is already starting to happen. She also acknowledges the possibility of a scenario where weakness in long-term bonds leads to a steeper yield curve, rather than cuts in the short term. While a 6% yield on the 10-year Treasury is not imminent, it remains a possibility within this market cycle.

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