JPMorgan’s Aronov Says Junk Spreads Are Way Too Low — for Now
- Strategist sees buying opportunities once spreads widen out
- She says market is adjusting to rates being higher for longer
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JPMorgan Investment Management Inc.’s Oksana Aronov is sure of at least one change coming in credit markets, namely that spreads between yields on junk bonds and comparable Treasuries absolutely must widen.
“High-yield spreads have no business being down there,” the firm’s head of market strategy told Bloomberg Television’s The Open on Wednesday, referring to the Bloomberg spread index that closed a day earlier at 389 basis points, near this year’s low.