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The Wall Street heavyweight is in talks to buy Palmer Square Capital Management, the husband-and-wife-run firm that has grown to become one of the biggest issuers of collateralized loan obligations.
While the Fed move was expected, Chairman Kevin Warsh's rhetoric on inflation drove up market-implied expectations for at least one more increase this year and as many as two more in 2027.
The Elliot-backed manager doubles down on research and expertise to confront market challenges, including tight arbitrage and a looming 2028 debt maturity wall.
Economists in a recent Bloomberg survey expected policymakers to hold their outlooks for unemployment and inflation largely unchanged.
There has been a stark change in regime when 10-year yields go much above 5.25%. After that point, the risks to bond volatility and hence stock vol and credit spreads markedly increase.
nterest-rate swaps showed traders ramped up bets on higher benchmark rates in the months ahead, with sticky price pressures seen pushing policymakers led by Fed Chairman Kevin Warsh to act.
Thursday's purchases were under increased scrutiny as the first since Bessent unexpectedly announced that the department would "at least double" the size of operations previously penciled in at $2 billion.
Palmer Square engaged bankers who have been fielding offers and whittling down a list of potential bidders.
Credit premiums remain subdued and downside protection across risky assets is still relatively cheap. Even the strain in market plumbing has been concentrated.
Waller said he was "willing to support holding the policy rate at its current level" if inflation continued moving toward the Fed's 2% target.
The move started on Friday after Federal Reserve Chairman Kevin Warsh doubled down on his vow to finally tame inflation, and has extended as energy prices rose on conflicts in the Middle East.
The emergency household-repairs provider is offering $1.8 billion of bonds backed by its assets through a whole-business securitization led by Jefferies Financial Group.
The dollar is trading at a three-month low after the Treasury's surprise midweek announcement that it would double the amount of longer-dated bonds it can repurchase ahead of schedule.
His action after 10-year Treasury yields, his self-specified financial benchmark, rose above where they were before Trump returned to office, shows mounting worries in Washington.
The new plan drove yields on the longest bond lower by nearly 10 basis points to 5.18%, pulling them back from their highest levels since 2007. The dollar fell by the most in three months.
He joins from Stifel, where he was a managing director, and is part of a shift that pushes Jim Baldo to senior managing director in fixed income sales.
The moves were echoed across sovereign debt markets from Europe to Japan, fueled by an uncertain outlook for inflation and changing bond-buyer demographics.
As the AI borrowing spree keeps accelerating, the spillover effect is playing a growing role by taxing the market's ability to absorb so much debt.
Issuance of securitized affordable-housing bonds reached $4.5 billion across 37 deals through August 13, already surpassing the $3.4 billion issued across 25 deals in all of 2025.
Jones will lead the firm's asset-backed securities (ABS) and collateralized loan obligation (CLO) capital markets efforts, while Rheault will be head of the business' syndicate business.
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