JPMorgan Chase & Co. has earmarked roughly $50 billion for new financing to junk-rated companies and private-equity transactions, according to market commentary circulating on 17 July. The commitment was disclosed on the same day the bank’s research arm cautioned clients that valuations in high-yield credit markets have reached “dangerous” levels, raising the risk of losses if economic conditions deteriorate. The apparent divergence between the investment strategy and the research warning drew criticism from investors and policymakers who argued that taxpayers could end up absorbing losses should the trades sour. Senator Rand Paul separately faulted large banks for hoarding reserves because the Federal Reserve pays interest on those balances, saying his forthcoming “End the Fed Payout” bill would bar such payments and push institutions to extend more credit to households and small businesses. JPMorgan has not publicly commented on how the new high-yield commitments align with its risk outlook. The bank is the largest U.S. lender by assets and, under post-crisis regulations, would be subject to heightened scrutiny if its balance-sheet exposures in speculative-grade credit expand materially.