While JPMorgan's Jim Casey is "concerned" about the impact of falling oil prices on the high-yield bond market, he said it is also creating a huge opportunity.
Energy companies, which make up 18 percent of the bond market, took out about $350 billion in debt to build out fracking and fracking infrastructure, he told CNBC.
"It's a big issue because obviously as oil prices drop, their ability to generate free cash flow is challenged, so a lot of these bond prices have been dropping fairly dramatically," Casey, global head of debt capital markets at JPMorgan, said in an interview with "Squawk on the Street."
With that free cash flow challenged, some firms could find it difficult to fund exploration and sustain production growth.
In fact, plunging oil prices sparked a drop of almost 40 percent in new well permits issued in the United States in November, according to data obtained by Reuters.