This is the time when 'accidents' like Enron have happened — this JPMorgan quant says yields have peaked and prefers bonds over stocks

“WorldCom, Enron, Bear Stearns, Lehman’s, accounting irregularities etc. have all occurred when the cycle is slowing and the Fed is raising rates,” says Khuram Chaudhry, a European equity quantitative strategist at JPMorgan in London. “The probability of an ‘accident’ is very high right now, than at any time over the recent past.” Chaudhry says JPMorgan’s own quant macro index suggests bond returns are likely to get a bid very... + full article