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?

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

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