J.P. Morgan Asset Management is highlighting a significant opportunity in high-quality fixed income, with Priya Misra, a portfolio manager, suggesting that investors can achieve a 6.5% yield without sacrificing credit quality. This strategy is particularly appealing to those worried about heavy exposure to AI stocks.
Misra co-manages the JPMorgan Core Plus Bond Fund ETF (JCPB), which has roughly $16 billion in assets, primarily in BBB-rated and above debt. She noted they are diversifying into double-B and single-B bonds due to widening high-yield spreads and are cautiously extending duration as they anticipate potential rate stability.
Also weighing in, Joanna Gallegos from BondBloxx emphasized the value of incorporating corporate debt into portfolios, citing favorable conditions with strong corporate fundamentals and economic growth. Her firm specializes in fixed-income ETFs across various sectors.
Both experts suggest that amidst market volatility, high-quality fixed income presents a balanced investment strategy.
