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

Credit spreads are hitting multi-decade tights 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 been warned.
• Turmoil ...