Jakarta, CNBC Indonesia - JPMorgan Chase CEO Jamie Dimon has warned\nof the potential for \u201csome sort of bond crisis\u201d in the future as global\ngovernment debt risks increase. He urged policymakers to act immediately\nbefore market pressures force more drastic interventions.<\/p>\n
The statement was made by Dimon at an investment conference hosted by\nNorway\u2019s sovereign wealth fund. When asked about his concerns over the\nsurge in government debt in various countries, he issued a stark\nwarning.<\/p>\n
\u201cWith the current situation, there will be some sort of bond crisis,\nand then we will have to deal with it,\u201d Dimon said, as quoted by CNBC\nInternational, Wednesday (29\/4\/2026).<\/p>\n
Nevertheless, Dimon admitted he is not overly concerned about the\nfinancial system\u2019s ability to respond to such a crisis. However, he\nstressed the importance of taking anticipatory steps early on.<\/p>\n
\u201cI\u2019m not too worried that we won\u2019t be able to handle it. I just think\nthat maturity should show that we need to handle it, rather than letting\nit happen,\u201d he added.<\/p>\n
Dimon explained that the combination of various current global risks\nis becoming increasingly complex and could trigger unexpected turmoil.\nHe highlighted several factors such as geopolitical tensions, oil\nprices, and continuously widening government budget deficits.<\/p>\n
\u201cThe level of factors adding to the risk is very high, such as\ngeopolitics, oil, government deficits,\u201d he explained. \u201cThose factors\nmight disappear, but they might not, and we don\u2019t know what combination\nof events will cause this problem.\u201d<\/p>\n
In a bond crisis scenario, markets typically experience a sharp spike\nin yields and a decline in liquidity. This occurs when investors rush to\nsell bonds while buyers withdraw, forcing central banks to intervene as\nthe buyer of last resort to stabilise the market.<\/p>\n
Dimon cited the 2022 UK government bond crisis as a real example. At\nthat time, the yield surge triggered market turmoil, leading the Bank of\nEngland to carry out emergency intervention.<\/p>\n
In addition, Dimon also touched on risks in the credit sector.\nAlthough he assessed that the private credit market, valued at around\nUS$1.7 trillion or equivalent to Rp28,900 trillion, is not yet large\nenough to pose a systemic threat to the US economy, he warned of broader\npotential pressures.<\/p>\n
\u201cWe haven\u2019t had a credit recession for a long time, so when we do, it\nwill be worse than people think,\u201d he said. \u201cIt might be terrible.\u201d<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jpmorgan-boss-speaks-frankly-on-threat-of-global-bond-crisis-1777477916", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }