What JPM's Michele Expects for Credit Spreads, Defaults

The video discusses the implications of high yield and default risk in the context of a lack of credit. It highlights the effects of excess liquidity and quantitative tightening on the economy, predicting a recession and its impact on credit spreads. The discussion includes an analysis of default cycles and their influence on market behavior, emphasizing risk aversion and de-risking. Finally, it compares the attractiveness of public versus private credit, concluding that public credit is currently more appealing.

What are some of the consequences of risk aversion in the market?

Which type of credit is considered more attractive right now, private or public?