From CNBC · Julian Torres · · 1m 20s
JPMorgan sees once in a generation bond opportunity
JPMorgan Asset Management says high-quality fixed income offers rare value for investors seeking diversification from AI stocks.
In brief
JPMorgan Asset Management says high-quality fixed income offers rare value for investors seeking diversification from AI stocks. JPMorgan Asset Management calls high-quality fixed income a once in a generation opportunity, citing six point five percent yields without taking excessive credit risk. Originally reported…
JPMorgan calls bonds a generational bet
Priya Misra, portfolio manager at JPMorgan Asset Management, says high-quality fixed income is a once in a generation opportunity for investors seeking returns without excessive risk.
“You can actually take credit risk in the highest quality companies and still get 6.5% yield.”
Six point five percent yields on top-rated debt
Investors can earn six point five percent yields on the highest quality companies without stepping down in credit quality, Misra told CNBC's ETF Edge this week.
“So, you actually don't have to go down in credit.”
Bonds offer shelter from AI concentration
Fixed income provides diversified returns beyond artificial intelligence and tech trades, including Treasury exposure and credit outside AI, addressing investor concerns about overexposure.
“What fixed income gives you is this diversified set of returns. It's not just an AI trade or a tech trade.”
BondBloxx co-founder backs the bull case
Joanna Gallegos of BondBloxx says base rates are high and stable, corporate fundamentals are strong, and the economy continues to grow, making fixed income yields historically attractive.
“The fundamentals of these corporations are so strong, and the economy continues to grow.”
Corporate debt can offset portfolio volatility
Gallegos advises investors to add corporate debt to portfolios to capture income and reduce exposure to stock market swings in an environment of strong economic fundamentals.
“It can offset the volatility in your portfolio.”
The key point
JPMorgan Asset Management calls high-quality fixed income a once in a generation opportunity, citing six point five percent yields without taking excessive credit risk.
