JPMorgan makes bullish call in fixed income space, suggests it's a once in a generation opportunity
J.P. Morgan Asset Management is making a bullish call on an underinvested market group: high-quality fixed income. Priya Misra, a portfolio manager at the firm, sees a once in a generation opportuniโฆ
J.P. Morgan Asset Management is making a bullish call on an underinvested market group: high-quality fixed income.
Priya Misra, a portfolio manager at the firm, sees a once in a generation opportunity for investors.
"You can actually take credit risk in the highest quality companies and still get [a] 6.5% [yield], Misra told CNBC's "ETF Edge" this week. "So, you actually don't have to go down in credit [quality]."
She suggested the strategy is particularly well suited for investors concerned about having too much exposure to artificial intelligence stocks.
"There's a huge AI exposure," Misra said. "What fixed income gives you is this diversified set of returns. It's not just an AI trade or a tech trade. You have the Treasury trade. You have credit outside of AI."
Misra co-manages the JPMorgan Core Plus Bond Fund ETF (JCPB) . The fund has almost $16 billion in assets under management, with just over three-quarters of its holdings in BBB-rated debt and above, according to the firm's website as of Aug. 31.
"We've actually been increasing some of the double-B [and] single-B exposure because there has been a widening in high yield spread," she said. "We like some investment grade. And now, we've started in the last few days to increase some duration as well, thinking we may be nearing the end of that rate move."
The JPMorgan Core Plus Bond Fund ETF is down more than 5% so far this year as of Friday's close, according to FactSet.
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