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A JPMorgan research chief compared the strategy to paying a mortgage with a credit card, warning it does nothing to reduce the underlying debt burden
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JPMorgan $JPM warned Friday that the U.S. Treasury's expanded bond buyback program may provide only temporary relief while leaving the country's debt problem unresolved.
James Sullivan, JPMorgan's co-head of global fundamental research, told CNBC that the Treasury is buying back longer-duration bonds while issuing shorter-dated bills — a maturity swap that does not reduce the total debt load. "It's a little bit like paying your mortgage with your credit card. It can work for a while, but eventually the mismatch starts to become more obvious," Sullivan said.
