JPMorgan Says Corporate Bond Markets at Risk of February Gloom
- Average blue-chip bond spread hovers near two-year low
- February tends to be worst month of the year for spreads: JPM
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JPMorgan & Chase Co. said US corporate bond spreads are at risk of widening next month, and that February is often a difficult month for the debt.
While shocks that led to costlier borrowing costs for the month in the past — such as the Covid-19 pandemic and US interest-rate hikes — are unlikely to repeat in 2024, there’s still risk looming in the month ahead, according to strategists led by Eric Beinstein.