The Blubber

Jamie Dimon of $JPM: if rates go up and we have a recession there will be real estate problems.

JPMorgan Chase CEO Jamie Dimon noted an improvement in market sentiment for equities and mergers and acquisitions, despite maintaining caution regarding the economic outlook, as per a CNBC interview on Monday.

Dimon highlighted that "confidence is up, there is more M&A chatter," and mentioned the strengthening of equity markets and the availability of high-yield markets. He acknowledged that markets are currently high and that people are feeling it, which is positive.

However, Dimon also expressed concern about certain factors. While the market is pricing in a 70% to 80% probability of a soft landing for the U.S. economy, he views the likelihood as "half of that."

Despite the U.S. economy avoiding a recession so far, Dimon has previously cautioned about geopolitical tensions, such as the war in Ukraine and conflicts in Israel, potentially impacting global growth. He had remarked in October that "this may be the most dangerous time the world has seen in decades."

Dimon welcomed increased regulatory scrutiny of participants in private credit markets, which are increasingly competing with banks for deals. Wall Street lenders have been raising substantial funds to re-enter lending to companies in debt-backed deals, countering competition from large private equity and asset management firms over the past two years.

JPMorgan has allocated $10 billion of its capital for private credit, with the potential for significant growth depending on demand, according to sources cited by Reuters earlier this month.