JPMorgan Chase & Co. isn’t expecting much in the way of US economic growth next year, but it will likely be enough for US investment-grade spreads — already near four-month tights — to narrow further and for returns to hit a five-year high by the end of 2024.
The bank anticipates “slow but positive” US gross domestic product growth next year at 0.7%, according to a Tuesday report. It also expects the Fed funds rate to fall by 100 basis points in the second half of the year. Meanwhile, total returns for US blue-chip bonds are set to end 2024 at 12.4%, the bank said.
Read More : JPMorgan Views Less Than 1% Growth as Sufficient for Credit
