According to CNBC, J.P. Morgan Asset Management is urging investors to consider high-quality fixed income as a once-in-a-generation opportunity, with portfolio manager Priya Misra saying investors can earn about a 6.5% yield in the highest-quality companies without moving down in credit quality. Misra, who co-manages the JPMorgan Core Plus Bond Fund ETF (JCPB), said the strategy may appeal to investors worried about heavy exposure to artificial intelligence stocks because fixed income offers diversified returns across Treasurys and credit outside AI. The fund has almost $16 billion in assets under management, with just over three-quarters of holdings in BBB-rated debt and above, according to the firm’s website as of Aug. 31. Misra said the firm has been adding some double-B and single-B exposure as high-yield spreads widen and has recently increased duration, as it may be nearing the end of the current 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. BondBloxx co-founder Joanna Gallegos also said investors should consider corporate debt and described yields across debt markets as historically attractive, while noting that higher base rates are stable and corporate fundamentals remain strong.
