Brian Chappatta, Columnist

Jamie Dimon’s Bond Warning Isn’t Like Ray Dalio’s

JPMorgan’s CEO wrote that “it’s hard to justify the price of U.S. debt,” but that’s because of a potential economic boom, not a loss of faith in the dollar.

April 7, 2021 at 2:26 PM UTC

By Brian Chappatta

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Jamie Dimon leaves room for Goldilocks in his bond call; Ray Dalio is more dire.
Photographer: Christophe Morin (Dimon), David Paul Morris (Dalio)/Bloomberg

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Bond bears have their sound bite from JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon’s annual letter to shareholders: “It’s hard to justify the price of U.S. debt.”

Dimon would hardly be the first captain of finance to suggest that the $21.4 trillion U.S. Treasury market, where 10-year notes currently yield 1.66%, is mispriced. Ray Dalio, founder of Bridgewater Associates, famously said last month that “the economics of investing in bonds (and most financial assets) has become stupid.” Mike Novogratz, chief executive officer of Galaxy Digital Holdings Ltd., said Tuesday in a Bloomberg Television interview that he’s “short a lot of interest rates.”