KBRA Releases Research ? Finally, a Dovish Inflation Print: A Big Step in the Right Direction

BY Business Wire | ECONOMIC | 11/11/22 10:18 AM EST

NEW YORK--(BUSINESS WIRE)-- KBRA believes the October Consumer Price Index (CPI) reading released on November 10 is exactly the kind of print that investors and the Federal Reserve want to see, as policymakers confront the highest rate of inflation in four decades. While one datapoint does not constitute a trend, the latest CPI reading suggests that both parts of the inflation equation?overheated demand and constrained supply chains?are easing. While we still believe a mild recession is likely in 2023, we note that further evidence along these lines reduces the central bank?s impulse to hike rates aggressively, which would intensify a contraction.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA?s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Source: KBRA

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.