Jamie Dimon Has a Warning for All the Credit Bulls: Macro View

Credit spreads are hitting the tightest levels in decades, and even JPMorgan, the biggest underwriter, is saying don’t buy. Ballooning supply, rising leverage and tight monetary policy are reasons to fear that the bubble will pop.

• For years, investors have been gleefully lapping up debt from high-quality US companies, egged on by ever-improving earnings. Blue-chip yields above 5%, ample liquidity and an implicit government backstop are bloating demand.
• Jamie Dimon, not for the first time, is warning that spreads could easily go higher. JPMorgan is the biggest marketer of corporate bonds globally — buyers have ...