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 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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