JP Morgan’s Kolanovic sees credit as good way to hedge Fed – Bloomberg

As the global market sentiment turns cautious, mainly driven by the covid woes and wait for the Jackson Hole Symposium, Bloomberg unveils comments from JP Morgan analyst Marko Kolanovic for clear guidance.

Investors wanting to hedge risks arising from potential Federal Reserve policy changes should consider credit markets instead of equities, said JPMorgan Chase & Co. per Bloomberg.

The piece adds, “That’s because while credit markets are expected to be volatile, they offer a cheaper alternative relative to other hedges.”

The strategists led by Marko Kolanovic also said, per Bloomberg, “US high-grade and high-yield spreads have been widening since mid-July, and that more volatile trading environment may continue through the end of the month as the market digests the global impact of Covid-19’s delta variant and any possible change in Fed rhetoric at Jackson Hole.”

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