JP Morgan AM: US credit conditions may tighten further

JP Morgan AM: US credit conditions may tighten further

Fixed Income United States
Inflatie (6) begroting

Credit conditions have been deteriorating in the US since August last year as banks have steadily tightened their lending standards.

The recent stress in the financial sector may exacerbate this credit tightening. A moderate recession in the US was already our base case given the aggressive monetary tightening undertaken by the Federal Reserve (Fed) over the past year. In our view, the potential for further credit tightening increases the probability of there being a recession. The key uncertainty for investors is the extent to which equity markets would be surprised by a recession.

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