Annaly Capital Management Inc. Chairman, President and CEO Kevin Keyes said recent market shocks underscore the fact that there are valuation discrepancies of asset classes in nearly every market.

Keyes back in November 2017 called the market "complacently smug" and said "something has got to give," referring to record low levels of volatility and seemingly unsustainable evaluations. Now, a quarter later, the market has been on something of a rollercoaster as has volatility returned to equity markets.

"The fundamental shift has begun to reverse the long-term credit curve flattening that had occurred between most lower and higher risk fixed income asset classes," he said on a call to discuss fourth-quarter 2017 earnings.

Under new Federal Reserve Chairman Jerome Powell, Keyes expects the market to return in part to data dependency. He said he likes the recent market volatility and anticipates a greater focus on fundamentals moving forward.