Carronade Capital’s Taylor Sees Market Reckoning on Horizon (1)

Since the Federal Reserve started to ramp up interest rates last year, Wall Street has become skilled at financial maneuvers to push off potential losses. But efforts to stave off that distress will start to unravel if rates remain high, according to Andy Taylor, head of research at Carronade Capital Management.

“There will be a reckoning,” Taylor said on the Dec. 12 episode of Bloomberg Intelligence’s FICC Focus podcast. “It’s just a matter of time in my opinion.”

Commercial real estate and private equity-backed firms, in particular, have skillfully avoided broad-based losses this year through clever financial maneuvers, ...