Our GFICC team believes central banks remain committed to over-accommodation, and the prospect of more fiscal stimulus out of the US will only intensify the reopening of the economy. Government, business and household balance sheets have all been refreshed with initiatives including low-cost borrowing and fiscal transfers. And the inflation story has become a complex than simply a view on whether it is transitory.
This content represents our GFICC team’s current view and overall strategy provided for information only based on current market conditions not taking into consideration any specific investor’s investment objective and risk appetite. Not to be construed as investment recommendation or advice.
Diversification does not guarantee investment return and does not eliminate the risk of loss.
1. Source: J.P. Morgan Asset Management’s GFICC Investment Quarterly Meeting (IQ Mtg). As of 09.06.2021. Opinions, estimates and forecasts may or may not come to pass. Provided for information only. These represent GFICC team’s views under normal market conditions subject to change from time to time.
2. For illustrative purposes only based on current market conditions, subject to change from time to time. Not all investments are suitable for all investors. Exact allocation of portfolio depends on each individual’s circumstance and market conditions.
3. Yield is not guaranteed. Positive yield does not imply positive return.
4. Source: Corporate Finance Institute website. 05.07.2021. A bank capital note is a note issued by a bank to raise funds for short-term financing issues, e.g., the need to meet its minimum capital requirements. Banks are highly regulated bodies, and they must maintain a minimum amount of capital in reserve to function properly as a financial institution.
5. Securitisation is the process in which certain type of assets, such as mortgages or other types of loans, are pooled so that they can be repackaged into interest-bearing securities. Examples of securitised debt include asset-backed securities and mortgage-backed securities.
7. Source: J.P. Morgan Asset Management. “MMT: short-term gain vs. long-term pain”, 21.03.2019. MMT is the financing of government spending by expanding the monetary base (i.e. printing money) through accounting channels.
8. Source: Robinhood Learn, 18.06.2020. An option-adjusted spread is the difference between the yield of a security that pays fixed interest payments and the current US Treasury rates, which represents the rate of return on a risk-free investment.
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