JPMorgan Sees More Pain Ahead for Junk and Private Lender Bonds
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JPMorgan Chase & Co. has a warning for US debt investors after high-yield bonds saw the worst slump since 2020 amid President Donald Trump’s evolving global trade war: It’s about to get worse.
“The implementation of high tariffs on many US trading partners and the subsequent call by our economics team for a US recession in 2H25 has caused us to raise our spread forecasts overall and to make multiple changes to sector recommendations,” strategists including Eric Beinstein and Tarek Hamid wrote in a note Tuesday.