Sunday, July 13, 2014
Inquirer Daily News

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

William Demchak tells Bloomberg

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

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.”


Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

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

Joseph N. DiStefano
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