Fed Sparks Market Bloodbath: Rate Hikes Coming Back? | Collin Martin

Watch on YouTube ↗  |  August 28, 2026 at 23:20  |  31:20  |  The David Lin Report
Speakers
Collin Martin — Chief Fixed Income Strategist, Charles Schwab
David Lin — Founder & Host, The David Lin Report / ex-Anchor, Kitco News

Summary

Collin Martin discusses the hawkish Jackson Hole speech from Fed Chair Kevin Warsh and its market impact. He explains why the Fed is likely to stay on hold near-term, sees long-term Treasury yields staying elevated, and remains favorable on corporate credit while highlighting TIPS as attractive and tech/hyperscaler issuance as a risk.

  • Warsh's speech was more hawkish than expected, stressing high inflation, but the Fed is likely on hold for now.
  • Risk assets sold off, with stocks, gold, Bitcoin down and Treasury yields up.
  • Long-term Treasury yields are seen reflecting resilient growth and likely to stay elevated, with the 10-year range at 4.25–4.75%.
  • Collin views investment grade and high yield corporate credit as attractive despite tight spreads.
  • TIPS are attractive because inflation is structurally elevated and they are underowned.
  • Hyperscaler debt issuance is surging and warrants diversification away from tech-heavy credit exposure.
  • Treasury buyback increases are small relative to total debt and unlikely to cap long-end yields.
Ideas
Collin Martin Chief Fixed Income Strategist, Charles Schwab 5:01
Fed likely holds; short-end yields rise.
Kevin Warsh's Jackson Hole speech was more hawkish than expected and reinforced that inflation is still too high, but Collin's base case is that the Fed remains on hold for now and does not hike in September unless August CPI or labor data surprise to the upside. With that hawkish bias, he expects a near-term bear flattening where short-term Treasury yields rise.
2-year Treasury note MED
Collin Martin Chief Fixed Income Strategist, Charles Schwab 10:38
Long-term yields likely stay elevated.
Long-term Treasury yields are reflecting a resilient economy with the fed funds rate at or near neutral, strong nominal growth, record corporate earnings and a stable labor market. Collin expects higher long-term yields to stay and sees the 10-year Treasury yield holding in the 4.25% to 4.75% range with 5% as a psychological cap.
10-Year Treasury Note 30-year Treasury bond HIGH
Collin Martin Chief Fixed Income Strategist, Charles Schwab 20:35
Corporate credit attractive despite tight spreads.
Credit spreads are near historic tights, but that reflects strong corporate fundamentals: growing revenues, profits, high margins, and a high short-term liquidity ratio. Collin is comfortable owning investment grade and high yield credit because yields are attractive at roughly 5%+ for investment grade and 7–7.5% for high yield.
LQD HYG HIGH
Collin Martin Chief Fixed Income Strategist, Charles Schwab 23:36
TIPS attractive amid stubborn inflation.
Inflation is expected to remain elevated above 2% over the next few quarters and may be structurally higher, so TIPS make sense as an underowned asset with attractive real yields. The 10-year TIPS yield is about 2.25–2.5% and its principal is indexed to inflation, providing direct inflation protection.
Treasury Inflation-Protected Securities (TIPS) HIGH
Collin Martin Chief Fixed Income Strategist, Charles Schwab 24:56
Avoid hyperscaler credit concentration risk.
Hyperscaler debt issuance has surged from roughly $30bn in 2020 to over $200bn year-to-date as AI capex requires more capital, pushing tech spreads wider relative to the index. Collin sees long-term uncertainty around AI project profitability and favors diversified investment grade credit rather than being overweight one issuer or the tech/hyperscaler sector.
Hyperscaler corporate bonds MED
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This The David Lin Report video, published August 28, 2026, features Collin Martin discussing 2-year Treasury note, 10-Year Treasury Note, 30-year Treasury bond, LQD, HYG, Treasury Inflation-Protected Securities (TIPS), Hyperscaler corporate bonds. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Collin Martin  · Tickers: 2-year Treasury note, 10-Year Treasury Note, 30-year Treasury bond, LQD, HYG, Treasury Inflation-Protected Securities (TIPS), Hyperscaler corporate bonds