JPMorgan Sees Central Bank Action Offsetting Risks to Junk Debt
- Impact of no-deal Brexit, U.S. elections softened by stimulus
- Bank sees 20 billion euros of loans, bonds lining up for sale
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Central bank stimulus aimed at minimizing the economic fallout from the pandemic will also limit any volatility in the market for high-risk debt triggered by a no-deal Brexit and a fiercely contested U.S. election, according to JPMorgan Chase & Co.
Kevin Foley, its global head of debt capital markets, said central bank support will lessen the impact of significant political risk events on Europe’s leveraged debt market and is fueling demand for higher-yielding assets.