High-Yield Bond Prices to Fall, Schwab's Martin Says

The video discusses the risks associated with Federal Reserve interest rate hikes, particularly focusing on the credit markets. Despite stock price declines, credit markets are holding up better than expected. Key risks include rising borrowing, input, and labor costs. The video also analyzes high yield bond spreads, noting a modest uptick and predicting future increases in spreads and decreases in bond prices.

What is a key concern mentioned in relation to the Federal Reserve's interest rate hikes?

• The decrease in borrowing costs

• The rise in stock prices

• The increase in labor supply

• The stability of credit markets

How are rising borrowing costs affecting corporations?

• They are reducing input costs

• They are increasing labor supply

• They are leading to higher input and labor costs

• They are decreasing wages

What is a significant risk for credit markets despite rising costs?

• Decreasing stock prices

• Stable credit spreads

• Falling labor costs

• Growing wages

What is the current state of high yield bond spreads compared to previous peaks?

• They are lower than previous peaks

• They are higher than previous peaks

• They are not affected by market volatility

• They are at the same level as previous peaks

What is the expected trend for high yield bond prices according to the discussion?

• They will rise

• They will fluctuate unpredictably

• They will fall

• They will remain stable