Sunday, February 7, 2016

New PNC boss warns: Bond rates will spike, prices fall

William Demchak tells Bloomberg

New PNC boss warns: Bond rates will spike, prices fall

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PNC Bank President William Demchak has been promoted to CEO. He replaces James Rohr.
PNC Bank President William Demchak has been promoted to CEO. He replaces James Rohr.

PNC Financial Services Group Inc. "is sticking to short-term investments in its fixed-income portfolio to avoid losses when interest rates climb," CEO-elect William Demchak tells Bloomberg News, in a story warning that junk-bond ("high-yield") values could tumble quickly, here.

Demchak added that long-term rates will likely rise before the Federal Reserve reverses and starts boosting rates: "'The long end of the curve could get out of their control. That’s everybody’s fear. I think that’ll happen sooner than people expect.”


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About this blog

PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, 215.854.5194, @PhillyJoeD. Read his blog posts at http://www.philly.com/PhillyDeals and his Inquirer columns at http://www.philly.com/philly/columnists/joseph-distefano/. Bloomberg posts his items at NH BLG_PHILLYDEAL.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

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