Article: S&P CreditForum: past experience on rates misleading. (Standard and Poor's CreditWire)

/S&P CREDITWIRE/

S&P CREDITFORUM: PAST EXPERIENCE ON RATES MISLEADING

NEW YORK, May 12 /PRNewswire/ -- Past experience and fears of inflation are misleading market participants into thinking that interest rates are headed much higher, writes Philip Braverman of Irving Securities Inc., in the next issue of S&P CreditWeek.

Markets are concerned that rates won't top out until well into a recession, when the Fed is satisfied that inflation has moderated enough to ease. But in the current cycle, rates have already peaked and are likely to fall further before a recession begins. Rates should trend dramatically lower even before the summer ...

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