Credit Markets Largely Indifferent to US Election, JPMorgan Says
- Spreads are tight even with potential for sweeps in election
- Any rise in yields will likely boost demand, strategists write
This article is for subscribers only.
Corporate bond markets don’t seem to be pricing in negative outcomes from the upcoming US election, even if a Republican sweep of the White House and both houses of Congress results in higher debt yields, according to JPMorgan Chase & Co. strategists.
Investment-grade corporate bond spreads are near their tightest levels in two decades, Bloomberg index data shows. That wouldn’t be the case if any election outcomes were viewed as particularly negative for credit markets, according to JPMorgan strategists including Eric Beinstein and Nathaniel Rosenbaum.