Finite opportunities in private credit are creating public, high-yield debt opportunities, J.P. Morgan Asset Management CEO George Gatch said. Gatch made the comment as J.P. Morgan unveiled its J.P. Morgan Active High Yield ETF. The fund will devote at least 80% of its portfolio to junk-rated bonds and opened with a $2 billion anchor investment. While junk bond spreads to Treasuries are “tight,” yields are attractive compared to equities, and default rates in this space are low, the report said. Beyond that, alternatives to high-yield debt like private credit are being overrun with investors. With that in mind, the liquidity advantages and high yields of publicly traded bonds provide a good entry point. “There’s a lot of money and investors chasing finite opportunities in the private credit market,” Gatch said, per the report. “You also have liquidity tradeoffs. You take those two things in combination and on a marginal basis, I would put my marginal dollar in public high-yield rather than private credit.” The private credit space is a key part of the capital spectrum for firms that cannot access, or choose not to get, normal bank channels.