Priya Misra called high-quality fixed income a “once in a generation” opportunity, saying investors can still earn about 6.5% yield in top-tier corporate credit without moving down the quality spectrum.
JPMorgan sees bonds as a hedge for portfolios crowded into AI and tech, and Misra said the firm has recently added some duration as it bets the rate move may be nearing an end.
The nearly $16 billion JPMorgan Core Plus Bond Fund ETF holds more than three-quarters of assets in BBB-rated debt and above, while also adding selective double-B and single-B exposure after high-yield spreads widened.
Misra said bond picking now requires close scrutiny of leverage and sectors, especially with higher rates still threatening parts of the economy such as housing.
BondBloxx's Joanna Gallegos echoed the bullish view, arguing stable base rates, strong corporate fundamentals and renewed income in fixed income can help offset portfolio volatility.