JPMorgan Chase CEO Jamie Dimon warned in a Bloomberg interview with Tom Mackenzie that rising borrowing costs will force companies to pay more to refinance or raise new debt, asking whether corporations are prepared for higher credit spreads. Dimon attributed the pressure to a supply problem: technology companies are borrowing heavily in 2026 to build data center infrastructure for artificial intelligence models, competing directly with the U.S. Treasury for the same funds and pushing interest rates higher. National debt hit an all-time high of $40.25 trillion at the start of October, according to the Joint Economic Committee, and the cost to service it keeps rising. JPMorgan strategists reported a 62.5% increase in deeply distressed loans, up from $40 billion in 2025 to $65 billion in the third quarter of 2026, the highest levels since March 2020. Dimon, who has run JPMorgan Chase since 2005, said the market will eventually ask for more and more, feeding into corporate debt and credit spreads, and advised companies to deal with the problem before it becomes a crisis.
JPMorgan Chase & CoDimon warns rising borrowing costs and credit spreads will pressure corporate refinancing, a macro credit/rate theme he is commenting on as JPMorgan CEO.
