JPMorgan Asset CEO Warns of Private Credit Froth, Touts High-Yield Debt

Froth in the red-hot private credit marketplace is creating opportunities in the world of public high-yield debt, according to George Gatch, JPMorgan Asset Management’s chief executive officer.

That’s part of the pitch behind the new JPMorgan Active High Yield ETF (JPHY), which begins trading on Wednesday. The actively managed fund will dedicate at least 80% of its portfolio to junk-rated bonds and launches with a $2 billion anchor investment, according to a press release.