PGIM’s Hunt Says Bond Market Shows U.S. Risks Recession by 2024

(Bloomberg) -- The bond market is indicating there’s a significant chance that the U.S. economy will tip into recession, likely by 2024, PGIM Chief Executive Officer David Hunt said Monday. 

Recent yield-curve inversions and rising rates reflect bond investors’ worry about growth prospects, Hunt said in a Bloomberg TV interview at the Milken Institute Global Conference.

Those signals clash with the message that the equity market is sending, he said. Equities, at least until April, had been saying “soft landing, don’t worry about it, the Fed will be able to manage this,” Hunt said. 

“You’re getting very different signals right now from the markets,” he said. 

Investors are also facing issues that largely vary according to specific regional conditions. “For the last 10 years we’ve all been largely in sync, and for the first time there’s huge regional differences in the economic outlook,” he said.

Earlier during a panel discussion at the conference, Hunt said wide-ranging sanctions on Russian energy exports could soon tip the European economy into a recession.

“We’re only one hydrocarbon sanction away from a recession starting,” Hunt said.

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