Jamie Dimon’s warning about cockroaches crawling around in credit markets continues to resonate as managers try to stamp out the threat of bad loans. https://t.co/shUfQGq1Z0 ...

We have a K-like recovery where some people are doing great and other people are doing miserably, says Bob Savage, head of markets macro strategy at BNY. ...

Carlyle CEO Harvey Schwartz says recent volatility in credit markets is on his "worry list". https://t.co/CkPbTDoJaa ...

Carlyle’s Harvey Schwartz said recent volatility in credit markets is on his “worry list” as the firm’s chief executive officer, but so far he sees nothing that suggestions conditions are deteriorating. https://t.co/WQ2zEU1qtf ...

Market Trends - Credit markets experienced a boom in issuance last month [1] - A key fear gauge in the investment-grade market closed at its lowest level of the year on Monday [1] Risk Assessment - UBS Group AG strategists observe cracks forming beneath the surface of the market [1]

Stablecoin Regulation & Safety - The industry believes bipartisan policy and administration leadership have established stablecoins as a safe, fully reserved form of digital cash on the internet [1] - The industry emphasizes the need for digital cash to be as safe as possible, especially when moving at internet speed globally [1] - Short duration treasuries are considered eligible collateral for stablecoins, alongside cash-like instruments [1] Credit Market Development - The industry disagrees with the view that stablecoins crowd out lending; instead, high velocity and utility money will drive robust credit market development on blockchain networks [2] - The industry anticipates the development of robust credit markets operating on blockchain networks [2]

Market Trend - Traditional equity and credit markets with over $100 trillion could shift to digital asset-backed instruments [1] - Digital asset-backed instruments are expected to outperform fiat counterparts [1]

Market Trends & Geopolitical Risks - Investors are closely monitoring Iran and Israel's trading strikes, alongside the Federal Reserve's meeting [1] - Markets appear inclined to shrug off risks related to geopolitical or trade tensions [2] - There's no shortage of a bid from the international community [9][10] Interest Rates & Debt Market - Volatility in rates is a significant concern [2] - US debt level is a frequent topic of discussion on Wall Street [1] - Credit markets have been exceptionally resilient, with both high yield and investment grade retracing losses [3] - Credit market activity is incredibly resilient, potentially leading to a record first half, absent the Covid acceleration of debt [4] Inflation & Economic Growth - Increased inflation is expected to be a focus in the Fed's projections and press release, with a potential downgrade of growth and one rate cut pushed into next year [13] - Tariffs are expected to increase inflation, with businesses potentially passing through about 50% of tariff costs to consumers [17] - The Fed may adopt a more hawkish bias than the market anticipates, potentially pushing one rate cut into next year [20][21] Fed Policy - The Fed is in a position to wait for more data, given strong labor markets and favorable inflation numbers [10] - The Fed aims to temper expectations of a "Fed put," viewing the inflationary impact as a one-off event that will be resolved by the fall of 2026 [19]